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Munis grow stronger as short - term UST cheapen slightly

Municipal bonds gained at the short end on Wednesday, with yields down up to six basis points, as short-term U.S. Treasuries weakened slightly and equities rose. James Pruskowski of Hennion & Walsh said markets are growing more comfortable ahead of the Nov. 3 midterm elections. ICI reported outflows of $6.908 billion for the week ending Oct. 14, after $5.536 billion the previous week, while ETFs drew inflows of $8.029 billion, their sixth straight week above $1 billion. In the primary market, Jefferies priced $887.48 million of Kentucky Public Energy Authority gas supply revenue bonds, and the Dormitory Authority of the State of New York sold $1.616 billion of personal income tax revenue bonds across several series.

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