Municipal bond funds

As the muni market continues to end the year on a strong note, market participants were wondering about what to watch out for in 2019.

While stocks are suffering still and there is a chance of a government shutdown, municipals strengthen yet again to close out the second to last week of the year.

The holiday season kicks off for the municipal bond market as new issue supply slows to a crawl while the year winds down.

As the end of the year approaches, new issue supply slows down.

Market data shows the trading gap between A-rated and BBB-rated corporate bonds has widened in volume.

Municipals were mixed at midday as Treasury bonds weakened while the last of the week’s supply trickled into the primary market.

Municipals look somewhat less attractive following last week’s rally, but should maintain a firm tone through year-end, an analyst said.

Fidelity’s money-market assets grew to $629 billion as of Oct. 31, according to Crane Data.

Municipal bonds closed out the week stronger ahead of a hefty new issue slate.

As the end of the year draws near, the municipal bond market will see lots of negotiated deals on next week’s new issue calendar.