Municipal bonds dropped the most in months as supply starts to pick up and geopolitical concerns hammer the US Treasury market.
Top-rated state and local government debt yields rose as much as seven basis points on Tuesday as of 4 p.m. in New York, marking the biggest such move for 10- and 30-year bonds since July, according to data compiled by Bloomberg.
“This is a typical January test when the calendar starts to ramp up,” Kimberly Olsan, senior portfolio manager at Newsquare Capital, said in an interview.
The muni market’s so-called “January effect” is ...
