NVG - Hurricanes And Higher Rates Pose Greater Risks For Muni Bond Market
A different picture of muni market weakness vs. 2005.
The municipal bond market has been recently pressured by rising U.S. interest rates, fueled in large part by the Federal Reserve’s tightening of monetary policy.
At its latest meeting, the Fed’s Open Market Committee (FOMC) elected to raise the target range for the federal funds rate to 2.0-2.25%, on the back of positive momentum in the domestic labor market and inflation near the central bank’s 2% objective.
Further evidence of a strengthening jobs market included ADP’s September data, which exceeded most analysts’ expectations, as well as