Munis showed firmer results in the long term, with notable monthly and yearly gains.
According to Birch Creek strategists, the technical picture is expected to improve in November and December, suggesting that "the wider new issue concessions brought about via the heavy new issue calendar will likely be rewarded."
The wider new issue concessions brought about via the heavy new issue calendar will likely be rewarded.
On Tuesday, munis were firmer out long, while USTs richened 10 years and in, and equities ended mixed. The muni-UST ratios were:
ICE Data Services reported similar ratios at 4 p.m.:
Birch Creek strategists observed that munis continued their underperformance last week for the second consecutive week, led by front-end weakness.
Author's summary: Munis show promise with expected technical improvements.