Municipals were steady once more as U.S. Treasury yields fell further and equities rallied as tensions in the Middle East eased despite early apparent breaches of the ceasefire deal.
The two-year muni-UST ratio Tuesday was at 69%, the five-year at 71%, the 10-year at 77% and the 30-year at 94%, according to Municipal Market Data’s 3 p.m. ET read. ICE Data Services had the two-year at 66%, the five-year at 69%, the 10-year at 74% and the 30-year at 92% at 4 p.m.
Event risk spiked recently from “a new war with Iran threatening higher oil prices and citizen safety, the heatwave to kick off hurricane season, federal tax reform efforts, and enhanced immigration enforcement and related protests,” said Matt Fabian, a partner at Municipal Market Analytics.
“All of these could unglue Fed action from modeled…
