Bond Market Commentary

Updates on bond market data, news, and activity each day.

April 26, 2017

Tuesday's Action

Treasuries finished lower on Tuesday. Yields of U.S. government debt rose as a risk-on sentiment took hold of global markets. Equities rallied higher on the session as a number of key earnings reports beat expectations and subsequently, weakened demand for perceived safe haven assets. Treasury yields also moved higher as investors await details of President Donald Trump’s tax plan, set to be unveiled on Wednesday. Benchmark 10-year notes were last down 17/32 to yield 2.33%. Shorter-dated two-year paper slipped 3/32 to yield 1.27%. At the long end of the curve, the 30-year bond was one point and 8/32 lower to yield 2.99%.

Municipal Market Commentary

Tuesday, municipal market indices were moderately weaker. As reported on April 19, U.S. municipal bond funds posted net inflows of $290.2 million compared with $1.6 billion of net inflows the prior week, according to Lipper FMI. Tax-exempt new issue supply is expected to total approximately $7.7 billion this week, up from $5.3 billion the prior week and above the 2017 weekly average of $6.0 billion. The Bloomberg 30-day visible supply fell $548 million to $12.529 billion on Tuesday, above the 12-month average of $12.302 billion. The total is comprised of $2.533 billion of competitive bonds and $9.996 billion of negotiated bonds.

This information is obtained from sources and data considered to be reliable, but its accuracy and completeness is not guaranteed by Wells Fargo Advisors.

Wells Fargo Investment Institute, Inc. is a registered investment adviser and wholly-owned subsidiary of Wells Fargo & Company and provides investment advice to Wells Fargo Bank, N.A., Wells Fargo Advisors, and other Wells Fargo affiliates. Wells Fargo Bank, N.A. is a bank affiliate of Wells Fargo & Company.

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