Muni Bonds Stage Biggest One-Day Rally Since 2017
- Top-rated, 30-year bond yields tumble 10 basis points to 1.59%
- ‘I’m shocked it’s gone as low as it has,’ investor says
This article is for subscribers only.
Just when municipal bonds didn’t seem to have much more room to rally, the fear cast by the coronavirus is driving them to their biggest one-day jump in more than two years.
As stocks plunged worldwide and investors rushed into the safest assets, the yields on top-rated state and local government debt maturing in 30 years plunged 10 basis points to 1.59%, the biggest one day drop since December 2017, according to the Bloomberg BVAL index. Those on 10-year benchmark tax-exempt bonds fell 7 basis points to 1.03%.