Posts Tagged ‘FOMC’
Another strong session for munis; FOMC minutes signal caution
The large drop in yields since the end of October can be reflected in sentiment that investors expect a potentially dovish Fed next year, and that a soft landing narrative gives them “permission to finally purchase the bonds they’ve been admiring,” said MMA’s Matt Fabian.
Read MoreMunis underperform UST rally post-FOMC
Municipals closed out October in the red, the third consecutive month of losses for the asset class.
Read MorePaltry new-issue calendar awaits amid FOMC, unsettled markets
If Treasury rates become “more stabilized,” it provides “a good reason to be somewhat constructive on munis for a while,” BofA Global Research said in a report.
Read MoreEl-Erian says Fed has no vision, warns of overtightening risks
“That is not how you drive policy and it’s certainly not how you drive policy when the impact of policy happens with a lag,” Mohamed El-Erian said. “This is the first Fed I know that has not gotten it.”
Read MoreSeptember sees first month of YOY supply growth
September’s total volume ticked up 1.2% to $27.585 billion in 531 issues from $27.251 billion in 592 issues a year earlier. However, the month’s total is lower than the $30.652 billion 10-year average, according to Refinitiv data.
Read MoreMuted reaction to FOMC, Powell as munis contemplate future hikes
As was expected, the FOMC held rates in a range between 5.25% and 5.50%, but the dot plot in the Summary of Economic Projections showed 12 of 19 members expect another 25-basis-point rate hike this year.
Read MoreMuni outflows hinder ample cash ready to be deployed
Fund flows “should be moving along a more positive trajectory, but they have yet to do so with munis unable to break free of the Treasury market’s tight grip,” Oppenheimer’s Jeff Lipton said.
Read MoreFed’s Barkin says inflation-rate drop may be soft-landing signal
Federal Reserve Bank of Richmond President Thomas Barkin said the greater-than-expected easing in inflation in June may be an indication that the U.S. economy can have a “soft landing,” returning to price stability without a damaging recession.
Read MoreMunis weaker but outperform UST selloff after GDP report
Municipal bond mutual fund saw inflows with Refinitiv Lipper on Thursday reporting investors added $552.219 million to funds for the week ending Wednesday following $1.040 billion of outflows the previous week.
Read MoreMunis weaker in spots, USTs better after FOMC meeting
The Investment Company Institute reported investors added $453 million to municipal bond mutual funds in the week ending July 19, after $111 million of inflows the previous week.
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