Munis hold steady as USTs firm

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Munis were little changed Monday, as U.S. Treasuries richened after Friday’s selloff and equities were up.

The asset class took a breather on the heels of last week’s volatility, which worsened toward the end of the week. Munis sold off Thursday into Friday, with yields following UST yields higher with double-digit cuts.

“We are in interesting times as the market must now balance these robust technicals against a backdrop of geopolitical tension in the Middle East and the nomination of Kevin Warsh, whose hawkish reputation is already being weighed by participants,” said Jason Wong, vice president of municipals at AmeriVet Securities.