BBN - Muni bonds to snap three-month losing streak amid surging inflows - Bloomberg

Municipal bonds are set to break a three-month losing streak in November, outpacing U.S. Treasury bonds and U.S. corporate debt on a month-to-date basis, According to Bloomberg's index data. Tax-exempt state and local government debt remain expensive due to generally strong local-government financial performance, Bloomberg notes. "Municipals were much more resilient during November than their taxable counterparts," Chevy Chase Trust Senior Managing Director Craig Pernick told Bloomberg. "Fund flows remain really high, maturities are still heavy and the calendar is fairly tight." Keep in mind that cash has flowed into muni bonds for 38 consecutive weeks, with $720M inflows during the week ended Nov. 24 and $1.4B in the prior week, Bloomberg reports. In addition, the short-end of the muni bond curve inches higher M/M, with the belly of the curve up nearly 40 basis points Y/Y but down 2bps M/M, and the long-end of the curve climbs Y/Y but

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Muni bonds to snap three-month losing streak amid surging inflows - Bloomberg