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6/04/2021 Market Commentary

  • Oppenheimer & Co. Inc.
  • June 4, 2021
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municipal bond yields

Municipal bond yields inched lower during a slow-paced week that cut short by the holiday on Monday. A meager $4.7 billion came to market, far below the weekly average of approximately $7.8 billion so far in 2021. Inflows into municipal bond mutual funds were strong once again, with $997 million of reported inflows. While Treasuries and equities eagerly await the jobs report being released on Friday, tax-exempt bonds yields have proven to be less sensitive to these economic reports, as the strong demand continues to pin yields in place.

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Tax-exempt yields over the past week
  10-Year MMD 30-Year MMD
May 28, 2021 0.99% 1.51%
June 3, 2021 0.99% 1.50%
Change (bps) -1 -1

Treasury yields kept a close eye on the wave of economic data that was released during the week. Much of the data released up through Thursday appeared strong, giving signs that the economy is making strides towards the Federal Reserve Board’s goal of full employment. Treasury yields ended the week slightly higher than where they started. All eyes now turn to the monthly U.S. payrolls report that that posts on Friday. A strong report could increase pressure on the Federal Reserve Board to begin thinking about altering their current spending.

Treasury yields over the past week
  10-Year Treasury 30-Year Treasury
May 28, 2021 1.59% 2.27%
June 3, 2021 1.63% 2.29%
Change (bps) +4 +2

Written by Dan Shaw, Oppenheimer & Co. Inc., Public Finance Associate.


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