CHICAGO, March 25 (Reuters) - Yields on top-rated U.S. municipal bonds were poised to fall 60 to 65 basis points on Wednesday as the market rallied on a massive coronavirus aid package in Congress, liquidity measures recently undertaken by the Federal Reserve and other factors.
Greg Saulnier, Municipal Market Data’s managing analyst, said low issuance over the last two weeks was also helping to push yields lower.
“It’s just the confluence of everything,” he said.
The $3.8 trillion market, where states, cities, schools and other issuers sell debt, had taken a beating amid a selling frenzy by funds and others scrambling for cash as coronavirus fears wreak havoc on global markets.
Reporting By Karen Pierog Editing by Chris Reese