Munis extend rally with yields falling most out long

Municipals extended their rally Wednesday with triple-A yields falling double-digit basis points following strong secondary trading, while a billion-dollar bond offering from Connecticut took focus in the primary. U.S. Treasuries ended slightly better, and equities were in the black.

Triple-A yield curves were bumped eight to 10 basis points across the curve with the biggest moves out long. The continued rally puts triple-A yields on par with early May yields. The 10-year fell to 2.69% on Refinitiv MMD’s scale and its 30-year sat at 3.03%, both falling 30 basis points since Thursday. Similar moves have been seen on all triple-A yield curves.

Muni-to-UST ratios fell, with the 10-year dipping below 100%. They were at 85% in five years, 98% in 10 years and 102% in 30, according to Refinitiv MMD’s 3 p.m. read. ICE Data Services had the five at 83%, the 10 at 96% and the 30 at 101% at a 4 p.m. read.