Will muni mojo return in second half?
By
Chip Barnett
The municipal bond market was little changed in quiet activity during Wednesday’s shortened trading session ahead of the Fourth of July.
Lipton: Remaining bullish for the second half
The bond market lost its mojo as the rally fizzled in June with munis again ceding outperformance to U.S. Treasuries for the month and now underperforming year-to-date, according to Jeffrey Lipton, managing director at Oppenheimer & Co.
“Given our outlook for constructive technicals, we can expect to see a return to more expensive ratios, but we are not sure that they break through the lows already achieved for the year,” Lipton said in a Wednesday report. “New data points showing stronger economic momentum and firmer inflation, and a more optimistic view on a trade agreement could soften market probability of more aggressive rate cuts and alter our muni performance outlook.”
safety and infrastructure GOs, $170.37 million of Series 2019B Taxable GOs and $158.49 million of Series 2019C refunding, libraries, parks and public safety project GOs.
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