Chasing Yields

Muni Yields appear to have peaked this week with improving demand and seasonal technicals supporting the market.

For years, institutional investors have had something retail municipal bond buyers simply didn’t – real time pricing, broad market visibility, and the tools to act on both with precision.

U.S. Treasury yields are easing as geopolitical uncertainty dominates. The 10-year Treasury yield dipped to 4.30% today, down slightly from the previous session and pulled back from an eight-month high of 4.44% two days ago.

In addition to this week’s ADP private-sector employment report for January, traders will be closely monitoring an announcement from the Treasury Department regarding the potential increase in future auction sizes, particularly for long-term borrowing.

This week, the Federal Reserve Committee elected to keep the Fed Funds Rate the same. Chairman Powell indicated there was broad approval from the Board to leave rates neutral.

As the new year unfolds, investors face a dizzying array of choices. The AI boom continues to dominate headlines. Cryptocurrencies promise revolutionary returns.

Job Openings and Labor Turnover Survey (JOLTS) numbers were released this week from the Bureau of Labor Statistics indicating that there were 7.15 million jobs opened at the end of November.

Treasuries edged lower today after the Bureau of Labor Statistics announced October and November job reports.

While investors wait for the results of the FOMC meeting and an anticipated cut, the bond market is keeping an eye on the bigger picture.

Traders are very optimistic that the Federal Reserve Committee will cut interest rates at its upcoming policy meeting on December 10th.