Laffer Tengler Investments CEO and Chief Investment Officer Nancy Tengler in The Bond Buyer

Munis underperform post CPI-led UST rally

Municipals were weaker Tuesday amid an active secondary and primary, underperforming a rally in U.S. Treasuries after the consumer price index came in at the highest level since 1981. Equities ended in the red.

Triple-A muni yields rose two to four basis points while UST yields fell 10 to 12 on bonds seven years and in. Muni to UST ratios rose slightly as a result. Muni-UST ratios were at 82% in five years, 89% in 10 years and 98% in 30, according to Refinitiv MMD’s 3 p.m. read. ICE Data Services had the five at 82%, the 10 at 91% and the 30 at 100% at 4 p.m.

Read more (behind a paywall) here.