Muni Fortnightly - May 7, 2018

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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, PBND, PMF, PML, PMM, PMO, PMX, PRB, PVI, PZA, RVNU, TFI, VFL, VGM, VKI, VKQ, VMO, VTEB, XMPT
by: Robert W. Baird & Co.

Summary

Treasury yields did very little given the heavy calendar of important data and a Fed meeting which produced no hike but acknowledgement of softer economic data and incremental willingness to allow inflation response function to be “symmetrical”.

Muni yields rallied as AAA GO Ratio declined substantially (to 83.3) since the end of March (from ~91).

Barclay’s Municipal Bond Index total return; -0.36% in April and -1.46% YTD.