Municipal prices retreated slightly in the face of advancing supply yesterday, dominated by $600 million of Houston revenue bonds, the largest deal of the week.

Friday's October employment data had convinced the market that the Fed would cut the discount rate to 4 1/2% from the current 5% rate and possibly let the fed funds rate fall an additional 25 basis points to 4 3/4%. But the move failed to materialize, pushing prices 1/8 to 1/4 point lower in the morning, where they remained for the rest of the session.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.