Global Economy News and Headlines

Munis Mixed, UST Yields Rise Post-Jobs Report

Municipal bond prices were mixed on Wednesday as U.S. Treasury yields climbed following a stronger‑than‑expected jobs report, prompting market participants to reassess the timing of the Federal Reserve’s next rate cut. The two‑year muni‑UST spread slipped to 59% while longer‑dated spreads held near 60‑90%, reflecting investor preference for higher‑yielding long‑term munis. The Investment Company Institute reported nearly $3 billion of net inflows into municipal funds for the week ending Feb 4, and the new‑issue calendar featured a blend of negotiated and competitive deals across states. Analysts expect the Fed to hold rates steady, keeping the short‑end of the curve less attractive and reinforcing demand for longer‑dated municipal bonds.