Secondary selling pressure weighs on market, pushing yields higher

Municipal yields rose Friday to close out a rough week ahead of a smaller new-issue calendar and the Fed’s expected rate hike.

“The yield curve has been — and will continue to be — the most important indicator we watch during Fed tightening cycles and rising rate environments,” said Wells Fargo Investment Institute Investment Strategy Analyst Luis Alvarado. “Fixed income still plays a key role inside a portfolio for investors in search for yield, but also as a potential stabilizer when unexpected risks surface.”