Jessica Lerner

Municipal bonds sold off Wednesday, following U.S. Treasuries to much higher yields in a risk-on trade after a sweeping victory by former President Donald Trump and a Republican takeover of the Senate.

The Bond Buyer's Deal of the Year awards will mark the 23rd year it has recognized outstanding achievement in municipal finance.

Municipals and U.S. Treasuries improved Thursday and equities ended mixed after the Fed cut rates 25 basis points and left the door open for further cuts in December.

"A sharply lower new-issuance calendar, peak yields, large redemption money and mutual funds inflows are all positive performance factors for the market," BofA strategists said.

Tax-exempt money market funds reached a 2024 high of assets under management at $136.84 billion for the week ending Wednesday, according to the Investment Company Institute.

Municipals were narrowly mixed Tuesday, ignoring larger U.S. Treasury market losses while stocks ended their breakneck pace of post-election gains to close the session down.

Municipal market outperformance continued Wednesday as triple-A yield curves saw an improved bias while U.S.

As investors have flocked to municipal exchange-traded funds in the past few years, more muni active ETFs are being launched in the space to meet more bespoke investor demands.

This month is experiencing similar volatility as 2016 when generic yields traded higher by 50 to 70 basis points during November of that year, said Kim Olsan, a senior fixed income portfolio manager at NewSquare Capital.

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