Secondary bond market

Despite the volatility in equities and Treasuries, the backdrop for munis is very positive.

"Munis are poised to continue this rally into December as we can end 2022 on a high note and close out the worst-performing year on record for munis," said Jason Wong, vice president of municipals at AmeriVet Securities.

Investors will be greeted Monday with a new-issue calendar estimated at $5.893 billion.

Munis saw the best performance in November in decades, with the asset class ending in the positive by 4.68%. The MSRB reported that trading volume reached another record in November, with 1.29 million municipal trades.

Powell said smaller interest rate increases are likely ahead — and could start as early as next month.

Tax-exempt munis have now regained late September levels, and November's rally has eclipsed October's selloff, MMA notes in a weekly report.

The Bloomberg Municipal Index is at positive 4.06% as of Friday. Bloomberg indices show high-yield returning 4.17%, taxable munis returning 4.38% in November while the Impact Index is at positive 4.66%.

Markets took the news that it will soon be appropriate to increase the Fed funds target rate at a slower pace as good news.

Lower supply in 2022 has somewhat helped the market avoid larger losses, many participants have said.

The negotiated calendar this week is very light due to the Thanksgiving holiday, with only four deals above $100 million.