Municipal bond yields rise, swept up in Treasuries surge

Link: https://www.reuters.com/article/usa-municipals-treasuries/muni-bond-yields-rise-swept-up-in-treasuries-surge-idUSL1N2KV2H1

Excerpt:

Earlier this year, the $3.9 trillion market where states, cities, schools and other issuers sell debt had been resisting a steep sell off in Treasuries that lifted yields, putting the historically close correlation between the two markets out of whack.

Now, munis are catching up, with the 10-year yield on Municipal Market Data’s (MMD) benchmark triple-A scale, which started 2021 at 0.720%, climbing 45 basis points since Feb. 12. It closed up 5 basis points at 1.14% on Thursday.

The iShares National Municipal Bond exchange-traded fund (ETF) fell on Thursday to its lowest level since November at 115.14. The largest muni ETF, which reached an 11-month high of 117.95 on Feb. 11, was last down 0.43% at 115.30.

Author(s): Karen Pierog

Publication Date: 25 February 2021

Publication Site: Reuters

The Yield Curve Is the Steepest It Has Been in Years. Here’s What That Means for Investors.

Link: https://www.barrons.com/articles/the-yield-curve-is-the-steepest-it-has-been-in-years-heres-what-that-means-for-investors-51612462158?mod=hp_columnists

Excerpt:

Long-term Treasury yields have been rising much faster than shorter-term yields, a sign that investors are betting on further acceleration in the U.S.’s economic recovery.

The steepness (or flatness) of the yield curve—the change in yields across different Treasury maturities—is seen as an indicator of economic growth. When the curve “inverts,” or long-term yields fall below short term yields, it is seen as a recession warning. Now the curve is getting steeper, a sign that investors expect stronger U.S. growth and inflation…

Author: Alexandra Scaggs

Publication Date: 4 February 2021

Publication Site: Barron’s