Municipals remained stable during a busy issuance day, with significant deals like $1.8 billion in New York City bonds. U.S. Treasuries displayed mixed results while equities advanced. The municipal bond market is currently performing well, benefiting from volatility in other asset classes. The summer redemption season is expected to slow down, with $43 billion in principal and $14 billion in interest expected for August. Investors are advised to consider munis as a protective investment strategy against market fluctuations.
The municipal bond market is "doing pretty good for the moment," said Jeff Timlin, a managing partner at Sage Advisory, indicating strength in the market amidst volatility.
Several sizable deals occurred, including $1.8 billion of general obligation bonds from New York City, contributing to a busy new-issue calendar.
Investors in munis should consider them as a good defensive posture against volatility, especially as the end of the summer redemption season approaches.
August marks the beginning of the end of the summer redemption season, suggesting a slower pace for redemptions for the rest of the year.
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