Municipal bond prices rallied across the yield curve on Thursday, with 10-year bonds surging the most since last April, mirroring a similar move in the US Treasury market. Benchmark 10-year muni yields fell 11 basis points to 3.79% at 10 a.m. in New York, heading for the biggest one-day drop in the last 18 months. Thirty-year benchmark yields dropped 11 basis points to 5%.
Similar Treasuries also rallied as traders sold off artificial-intelligence stocks and turned to haven assets. Muni returns are up nearly 1% this month as of Wednesday, following a September that marked the worst monthly performance in nearly two decades. Inflation concerns fueled by the Iran war and fears of interest-rate hikes triggered a widespread bond selloff.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing