This week (June 10 – 17, 2011) saw more of news about the US government’s Battle with the slowing economy. An improvement in new issuance. This may be a good time to adjust your asset allocation. The Week’s municipal bond news included:
- Market Close: Low Yields Temper Demand for New Issuance – As we have been seeing, you’ll long municipal bonds have been following, making investors wonder why they should risk money in the municipal bond market when yields are so low.
- Investor Advocate: ‘Do Not Buy California Bonds’ – An investor advocate and public finance watchdog calls California’s marketing blitz to sell bonds a ‘Taxpayer-Funded Misinformation Campaign’. With California’s bond rating so low, I would have to agree with him.