Muni Market Update

While the fixed income market experienced some swings in yield this week the final result was slightly positive.

10-year treasuries saw a positive price movement around 0.20%

The Bloomberg Muni index and the Bloomberg Long term muni index returned .27% and .21% respectively. The Muni index outperformed slightly due to slight outperformance of shorter dated municipal bonds.

The First Trust Municipal Closed end fund index had a return of .31% in line with the overall performance of Municipal bonds for the week.

Municipal bond ratios to Treasuries cheapened slightly from 96% to 98% in 30 years. 10 year ratios richened slightly and shorter dated securities held firm and continue to be the richest part of the curve.

Looking forward, we would expect some transitioning from the short end of the Municipal yield curve into the long end due the relative value of both.