Thornburg Investment Management CEO Jason Brady in The Bond Buyer

Mutual fund inflows climb, high-yield back in the black

Municipals were stronger as the New York Urban Development Corp. led the primary with $1.76 billion of taxable and exempt sales tax bonds in the competitive market while Refinitiv Lipper reported a rebound in fund inflows.

Triple-A benchmarks were bumped a basis point in spots along the yield curve, but the asset class has underperformed the moves to lower yields in U.S. Treasuries. The 10-year UST landed at 1.515% and has fallen 10 basis points since Friday and the 30-year hit 2.016%, 15 lower than Friday. Municipals have mostly held steady as bid-wanteds have risen, but so have yields and ratios, making for a more satisfactory range for investors getting into the market at these new higher levels.

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