For the municipal bond market, the first half of 2011 was characterized by fewer defaults and new issues than expected. The low supply of new issues has caused a technical imbalance and resulted in a 4.36% return for the second quarter. While a flight to quality mentality reigned at the end of May and beginning of June, hopes that a second Greece assistance package will finalize in the near future have contributed to rising U.S. Treasury bond yields.
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