Excerpt from The Bond Buyer...

FOMC roils equities and UST while munis sit tight

By Lynne Funk Gary Siegel January 05, 2022, 4:40 p.m. EST 8 Min Read

While U.S. Treasuries and equities sold off after release of the FOMC minutes, municipals were largely unchanged on Wednesday, pointing again to a lack of primary supply to provide yield guidance as participants sit back and watch what unfolds in broader markets.

Other than a small spike in trading activity Wednesday, the week should be relatively quiet as investors haven’t fully “immersed” themselves into the market following the holiday break, Roffo said.

“The market should increase its activity next week as more investors get involved and more new-issues are priced,” he said.

John R. Mousseau, president and chief executive officer and director of fixed income at Cumberland Advisors agreed there was very little action on Wednesday.

“It’s mostly money floating around from rollover looking for a home,” he said. “It’s a good time to feed the beast a little. You would never know that the 10- and 30-year Treasury yields are up a lot in the first three days of the year, with little upward movement in muni yields.”

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