Muni curve flattens, UST steepens and inflows tick up

Municipals were stronger Thursday out longer, while U.S. Treasuries rallied, larger on the shorter end, and Refinitiv Lipper reported $600 million of inflows, the most since mid-September, signaling the fund complex is still engaged in the asset class.

Triple-A benchmarks bumped levels by one to three basis points, with the largest moves out longer on the curve with no changes on bonds inside six years, following on the one to three basis points yields fall on Wednesday, flattening the yield curve further.

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