10/06/2023 Market Commentary
- October 6, 2023
Following last week’s surge, municipal bond yields held somewhat steady this week and outperformed Treasuries. However, Municipal bond funds did see $1.3 billion of outflows. This was the largest weekly outflow since May and brings total outflows for the year to $9.7 billion. For comparison, at this time last year outflows totaled just over $60 billion. The 10 and 30-year MMD ended the week up by 3 basis points each.
Tax-exempt yields over the past week
| 10-Year MMD | 30-Year MMD | |
|---|---|---|
| September 28, 2023 | 3.47% | 4.36% |
| October 5, 2023 | 3.50% | 4.39% |
| Change (bps) | +3 | +3 |
Treasury yields continued to rise this week with the 10 and 30-year treasury increasing by 11 and 14 basis points respectively. Treasury yields sold off further Friday morning following the release of the September Jobs report. The Labor Department reported that 336K jobs were added last month, far exceeding market expectations. In addition, the Labor Department revised their August Jobs report higher. The continued resilience of the labor market is suggesting to investors that the Federal Reserve still has room to raise rates further this year. Treasuries were trading 6-9 basis points higher Friday morning as a result.
Treasury yields over the past week
| 10-Year Treasury | 30-Year Treasury | |
|---|---|---|
| September 28, 2023 | 4.61% | 4.74% |
| October 5, 2023 | 4.72% | 4.88% |
| Change (bps) | +11 | +14 |
Written by Michael Garcia, Associate, Oppenheimer & Co. Inc., Public Finance.
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