Munis Extend Biggest Rally Since April on Puerto Rico Purchases
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The $3.7 trillion municipal-bond market extended its biggest rally since April, with investors buying Puerto Rico, Illinois and California debt ahead of the Federal Reserve’s two-day meeting beginning tomorrow.
Yields on top-rated munis maturing in 10 years declined 0.04 percentage point to 2.99 percent at 1 p.m. in New York, the lowest since Aug. 16, according to data compiled by Bloomberg. The tax-exempt interest rate touched a 29-month high of 3.15 percent on Sept. 6 before declining the most in five months.