Front-end weakness continues, UST yields rise

Weakness on the front end of the muni curve continued Monday, as U.S. Treasuries saw losses and equities ended mixed.

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Momentum in munis may be impacted, NewSquare Capital’s Kim Olsan wrote, by the upcoming FOMC meeting and the week’s large calendar. She noted that all sectors and categories posted gains this month, a marked improvement from last April.

“Market resiliency is better than may have been expected, considering lower redemptions, tax-season selling, and a global conflict contributing to inflation concerns,” Olsan wrote. “This month’s most active range for customer buying is 7–12 year maturities at 62% — the heart of [separately managed account] targets.”