November 10: Muniland snaps

November 10, 2011

The Federal Reserve’s “Operation Twist” has succeeded in pushing down longer term U.S. Treasury rates since it was announced on September 22 (see the green line in the chart above). However, municipal bond rates have not followed Treasuries lower (see the blue line). I don’t know of any academic or dealer studies on this topic, but the market data evidence compiled by Daniel Berger of Thomson Reuters Municipal Market Data shows that Fed Chairman Bernanke’s latest attempt to jolt the economy through lowering interest rates is not spilling over into muniland.

Good Links

Reuters: Jefferson County drops a petition at the bankruptcy court door

CNBC: Meredith Whitney rides again

Bloomberg: If you own hospital bonds, Supercommittee may soon make you feel like you need an aspirin Rhode Island General Assembly is dragging its feet with pension reform

Cal Watchdog: California pension reform faces uphill battle in Democrat-controlled legislature

Pensions and Investments: N.Y. State Teachers Retirement System returns 23.2%

Kansas Reporter: Filling pension gap could threaten Kansas’ credit rating

The State: South Carolina retirees getting the budget axe too

ZeroHedge: Pensions are due for implosion

@Twitter Talk

Michael Cooper @coopnytimes Michael Cooper   Incumbent mayors reelected in Houston, Philly, Baltimore, Indianapolis, Charlotte and possibly San Francisco:

Capital Tonight @CapitalTonight Capital Tonight   Cuomo on unions: You haven’t seen “hysterics” in NY like you have other states when it comes to organized labor.

GreatLakesGuy @GreatLakesGuy GreatLakesGuy   Detroit “turns the page” as voters approve significant City Charter revisions

Michael Cooper @coopnytimes Michael Cooper   Mainers, by a wide margin, overturned a law to end Election Day voting registration: via @bangordailynews

Katherine Lewis @KatherineLewis Katherine Lewis   The new, virtual village — for seniors — can delay move to a nursing home

Fixedology @Fixedology Fixedology   Year to date thru 10/31/11 the overall Muni market is up 8.00%. Long bonds and lower investment grade have been top performers


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