Thornburg Investment Management Portfolio Manager John Bonnell in The Bond Buyer

Short-end strength, long-end pressure steepens yield curve

The triple-A yield curve steepened further Wednesday, with municipals better on the short end and much weaker out long while a large general obligation deal from Maryland took the focus in the primary. U.S. Treasuries were weaker and equities ended in the red.

Triple-A yields were bumped as much as five on the short-end and cut up to 10 on long end, moving ratios higher on the 30-year. Muni-to-UST ratios were at 65% in five years, 81% in 10 years and 92% in 30, according to Refinitiv MMD’s 3 p.m. read. ICE Data Services had the five at 67%, the 10 at 82% and the 30 at 93% at a 4 p.m. read.

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