The Municipal Securities Rulemaking Board (MSRB), the regulatory body that oversees the municipal securities market in the United States, recently released its annual report on the status of the market. The report, which can be reviewed here, offers some fascinating insights into what was a tumultuous year for the market. Our highlights follow:
- Spring Market Dislocation: For about two weeks in March, the market simply stopped functioning. During this period, benchmark yields in 3-, 10- and 30-year bonds increased by 213, 193 and 182 basis points, respectively. However, the recovery was similarly swift, with yields substantially returning to their pre-pandemic levels by the end of March.