After four months of sideways price (yield) action in bonds, one might tend to believe nothing has changed or nothing is happening. Thankfully the municipal bond market offers us tens of thousands of unique opportunities over a similar timespan.
Ten year treasury notes doubled in yield from 1.32% to 2.64% in the second half of 2016, but for 2017 the market has traded in a narrow range. This corrective phase may already be complete or we may have more time to diddle. The important takeaway is that I believe the market for longer-term bonds will resolve into much higher yields and much lower prices. (more…)
