NXP - Q4 2018 Review: Munis Turn It Around
By John R. Mousseau, CFA
Muni yields rose in the first six weeks of this quarter - mostly in sympathy with US Treasuries (UST). We saw the 10-year and 30-year Treasury bonds rise 20 and 25 basis points respectively. Since early November, AAA muni yields ((AAA)) have dropped across the board, and the 10-year Treasury yield has fallen a whopping 45 basis points in a matter of seven weeks.
The consternation and volatility in the stock market are the main reasons for yields doing a U-turn.
Some of the other themes affecting muni yields we