Data released Thursday was mostly negative, with jobless claims rising, housing starts down and the manufacturing sector off from last month. Refinitiv Lipper reports $1.96 billion of inflows into municipal bond mutual funds.
COVID-19 pandemic drives U S municipal borrowing to 10-year high: media saltlakecitysun.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from saltlakecitysun.com Daily Mail and Mail on Sunday newspapers.
State Borrowing at 10-Year High, But Muni ETFs Still Going Strong January 13, 2021
The municipal bond market is experiencing a boom as more states seek to capitalize on low rates to issue new debt to cover rising costs. Municipal bond exchange traded funds continue to strengthen as income hunters look for more attractive yield-generating assets in a lower-for-longer rate environment.
Over the past three months, the
SPDR Nuveen Bloomberg Barclays Municipal Bond ETF (NYSEArca: TFI) was up 1.9%.
According to Refinitiv data, muni bonds for new projects hit $252 billion in 2020, after municipal bond issuance in 2020 was at its highest in a decade. The new borrowing put the total amount of outstanding municipal debt above $3.9 trillion for the first time since 2013, the Wall Street Journal reports.
Low interest rates, tight government budgets provide backdrop for muni bond boom
The Federal Reserve’s commitment to low rates suggests debt issuance will remain at a high level.
Photo: Liu Jie/Xinhua/Getty Images
By Jan. 12, 2021 5:30 am ET
Municipal-bond issuance in 2020 was the highest in a decade, reflecting the collapse of interest rates and the increased costs cities and state governments are facing from Covid-19 shutdowns.
Bonds for new projects reached $252 billion last year, according to Refinitiv, a small increase from the previous year and the highest since 2010, when a federal incentive program helped push the total above $270 billion. The new borrowing drove the total amount of outstanding muni debt above $3.9 trillion for the first time since 2013,.