Municipal Market Update – December 2019

This month, the Federal Open Market Committee (FOMC) voted unanimously to hold rates steady and the US treasury curve steepened moderately. The current target fed funds rate is 1.5-1.75% and the probability of a rate cut in 2020 has decreased as predicted by the futures market. The swap curve steepened as well, experiencing a ~0.20% upward shift on the longer end of the curve beyond 5 years. Local bond spreads have remained steady and there have been no substantial changes in the municipal yield curves across the investment grade credit spectrum this month.

 

US Treasury Yield Curve

 

Our Municipal Market Update is data-driven, one page sheet that is intended to give you an overview of key interest rates – both floating and swap-to-fixed as well as the credit spreads of key local and state entities with data as of December 31, 2019. It is written for those making credit and investment related decisions for municipalities and non-profit institutions. If you have additional questions or would like to learn more about our municipal advisory and investment banking services, visit our Municipal Advisory page and contact Michael Stone, CFA.

Click here to access our Municipal Market Update.