Interest rates

Market participants will focus on reading the tea leaves of the Fed statement Wednesday.

President Trump stepped up his attacks on the Federal Reserve Board and its chairman, Jerome Powell, blaming the central bank for declines in the stock market.

The board stands by its chief economist's conclusions after criticism from the Bond Dealers of America.

The MSRB should tread carefully in basing future research or rulemaking on its July study of secondary market spreads, BDA said.

Indications of a more hawkish sentiment at the Fed may continue to pressure tax-exempt yields higher, particularly on the short end of the curve.

Munis will see more than $5 billion of new supply, with the Federal Open Market Committee set to meet next week and raise interest rates again.

Scarcity mixed with strong demand and Fed announcements on rates and inflation helped munis outperform most fixed-income assets so far this year.

Water, wastewater, and securitization deals, and possibly an O'Hare airport sale, are still to come from Chicago this year.

Rising short-term rates and a lower corporate tax rate have already pushed some municipal issuers out of bank loans and back into the traditional muni space, analysts said.

Susan Courtney of PGIM Fixed Income navigates her muni team toward value in improving market.