By laksh5382 
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According to data from the Bloomberg index, Munis is track for 2% loss this month, while US Treasury returns were flats till March 30. However, on Monday, the root is designed to reduce the root, as both assets are rally rally as a weakness of the stock-market, demanding for safe-havan investment. The Muni yield has exceeded 4 basis points across the curve.
March is usually a difficult month for the US state and local debt market. According to data compiled by Bloomberg, the sale of new loans increases in this month-this month has increased by 20% year-on-year. But the low bonds around this time mature, so investors may not have money to reinstate. Some investors also sell their holdings to pay their tax bills in April, which provided pressure.
Kim Olson, Senior Fixed-Incoming Portfolio Manager of Newskwir Capital LLC, wrote in an email, “Every month lighter redemption can be combined with average for average supply to make headwinds.”
This March, these dynamics have been extended with policy-related uncertainty. Investors are assessing whether the Republican attempt to increase the 2017 tax deduction may pose a threat to the tax-free situation of the monk bond.
According to LSEG Lipper Global Fund Flows, these ideas have weakened the demand, investors earned around $ 573 million from the municipal-bond funds in the week ended on Wednesday.
Underperformance means that the sages have made cheaper than the treasure. A major gauge of relative value in the market – percentage of AAA Muni versus percentage – the percentage of tragedy – the state and local loans are at its cheapest since November 2022.
Despite this recent weakness Bank of America Corp, strategists said on Friday that they hoped that the background would improve by the second half of April after the taxes were due to taxes.
Nevertheless, the supply seems to be high as a demand taters. JP Morgan Chase & Company strategists said in a note on Monday that a sales of $ 10 billion for this week could put pressure on the Muni market.
Last week underperformance in Munis was “mainly completely pure supply, UST rate volatility, exchange-traded funds outflow and tax-loss,” he said.
Such more stories are available Bloomberg.com