Secondary bond market

High-yield inflows return to the tune of $821 million. The 10-year triple-A hovers just above 1%.

The Investment Company Institute reported another week of inflows, $800-plus million, as participants focus on that part of the market as an indicator of how munis will fare during tax season.

The theme of low supply, positive inflows and the anticipation of higher tax rates led triple-A benchmarks firmer by one to two basis points.

The services sector showed improvement and employment made big gains in March, but economists note the labor market remains far from full employment.

Non-farm payrolls rose 916,000 in March, according to a Labor Department report Friday, while the unemployment rate fell to 6%.

Susan Courtney, head of the Municipal Bond Team at PGIM Fixed Income, talks inflation, muni credit in COVID times and infrastructure. (27 Minutes) Lynne Funk hosts.

Municipal bond industry leaders weighed in on their expectations for 2021 during a panel discussion at The Bond Buyer's National Outlook Conference.

Biden's $2 trillion infrastructure proposal, combined with the shortened week and the arrival of the second quarter, took attention away from the muni market.

Larger fund flows, lower supply and optimism surrounding issuer credit post-stimulus allowed for a March price reversal that avoids posting two consecutive months with losses. The consumer confidence index jumped to its highest reading in a year in March.

Municipals continue to outperform Treasuries amid a light holiday-shortened week led by a California tobacco deal.