The Fed did not meeting during the month, and fed chairman Jerome Powell has signaled that they plan to maintain the target rate of 1.5-1.75% when they meet in December. Overall, there has been a small upward parallel shift in the US Treasury Curve and the US Swap Curve. The spread on A to AAA muni curves have tightened which has lead to an increasing spread on the BBB curve. Local bond spreads have remained stationary this month after moderate monthly fluctuations over the past year.
Probability of a Rate Cut
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 November 29, 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.
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