Municipal bonds easily overcame initial inflation jitters yesterday and renewed their orderly march higher.
The producer price index for finished goods was unchanged in November, bringing the yearly wholesale inflation rate to 0.03%, the Labor Department reported. But bonds were pestered by a 0.4% rise in the core rate. Traders quickly decided the rise was an aberration and the market regained confidence and began to make gains. Investors have pushed bond prices higher all week, snapping up secondary bonds and new deals.