Munis firmer, USTs rally to start holiday-shortened week

Munis were firmer Monday, underperforming a U.S. Treasuries rally, as equities ended mixed.

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This strength comes after another “challenging week” for the muni market, which continued to deal with ongoing macroeconomic uncertainty and somewhat heavy supply, said Daryl Clements, a muni portfolio manager at AllianceBernstein.

The new-issue calendar, though, takes a “breather” this week with the shortened week, with nearly $7 billion expected to price, which “should be more manageable and aided by March reinvestment cash from maturities and coupon payments,” he said.