Municipals Rally Behind Weak Economic Data

Curran, William; Scarchilli, Michael
May 2006
Bond Buyer;5/19/2006, Vol. 356 Issue 32385, p2
Trade Publication
The article presents information on the bonds market in the U.S. The municipal market rallied on May 18, 2006, as Treasuries rebounded sharply on technical strength and weaker-than-expected economic data after losing ground on May 17, 2006 when traders' fears of inflation were justified by higher-than-expected consumer prices in April 2006. The market has a very nice feel to it and there is a demand for bonds. The Treasury market on May 18, 2006 erased inflation-spurred losses, with the 10-year note yield declining 10 basis points to 5.06%, as most of the session's economic data failed to meet expectations and technical buyers flocked to the market. According to a trader in New York, relative value and arbitrage traders were helping push the market higher.


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