Muni Fortnightly - December 18, 2017

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Includes: AFB, BAF, BBF, BBK, BFK, BKN, BLE, BSD, BYM, CXH, DMB, DMF, DSM, DTF, EIM, EIV, EOT, EVN, EXD, FLMB, FMB, FMN, IIM, IQI, KSM, KTF, LEO, MEN, MFL, MFM, MFT, MHD, MMU, MNP, MQT, MQY, MUA, MUB, MUE, MUH, MUS, MVF, MVT, MYD, MYF, MYI, MZF, NAD, NEA, NEV, NIM, NMI, NUV, NUW, NVG, NXP, NXQ, NXR, NZF, OIA, PMF, PML, PMM, PMO, PMX, PRB, PVI, PZA, RVNU, TFI, VFL, VGM, VKI, VKQ, VMO, VTEB, XMPT
by: Robert W. Baird & Co.
Summary

Treasury curve flattens more (2’s-10’s at 53 bps) after below expectations CPI data and FOMC Fed rate hike and stated intentions of three more in 2018. ECB and BOE sat tight.

Munis completed their volatile round trip from tax policy expectations and spike in issuance – AAAGO Ratio comes back to nearly where it began one month ago.

Bloomberg Barclay’s Municipal Bond market index total return was -0.54% in November (% 4.36YTD).

Private activity bonds spared in the tax bill; advanced refundings gone.