My municipal bonds were trading at 80 to 85 cents on the dollar at the beginning of the year. Now, just 2 1/2 weeks later, these bonds are trading just over par, a 20% increase in three weeks!
It seems that the combination of (1) the Democrats talking up a new stumulus package focused on giving money to the municipalities for public works projects, (2) Treasuries trading without any yield, and (3) a stock market that has lost another 1,000 points has sent many rushing into these instruments.
This has caused an incredible rise in instruments that have never seen this type of return in such a short period of time. Very unusual. Actually extraordinary.
Add your Comment
or use your BestCashCow account