Muni’s bounce off lows of day

The weakness in US Treasuries over the past few days has also resulted in big weakness in MBS and muni’s. Muni’s have also been under pressure because the tax proposal agreed on in DC didn’t include any extension of the Build America Bond program and the belief that we would see a flood of tax exempt issuance in 2011 to replace the BAB’s. MUB, the main muni ETF, is bouncing off its lows after this headline just hit the DJ tape, “Senate Democrats seek to add Build America Bonds to tax deal.”

Print Friendly, PDF & Email

Posted Under