Thornburg Investment Management Co-Head of Investments and Managing Director Jeff Klingelhofer in The Bond Buyer

First cuts to yields in weeks, but munis still outperform risk-on trade

Municipals could not ignore broader markets and triple-A scales cut levels by two to three basis points along the curve, but again largely outperformed a major risk-on trade Thursday that moved U.S. Treasuries to trade off double digits while equities boomed.

Secondary trading showed weaker prints into the early afternoon. Large blocks of benchmark credits — Maryland, Utah, Washington, Georgia — exchanged hands at higher yields with more sellers than buyers on the day, but those who were buying took the opportunity to capture the minor increase in yield. Inter-dealer trading made up 22% of the flow.

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