Municipal yields are expected to stabilize, according to Matt Fabian, president of Municipal. He stated:
In theory at least, municipal yields should be able to stabilize here; levels remain attractive for pure income buyers while more sustainable constructive fund inflows are just enough to speak for rising issuance in the absence of meaningful reinvestment.
Munis were steady to firmer on Wednesday, with U.S. Treasuries showing little change and equities ending up. The muni-UST ratios were:
Author's summary: Munis stabilize with attractive yields.