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The article features J.P. Morgan, a private bank based in San Diego, California. It discusses factors to consider when markets are volatile for lessons learned and presents charts and graphs showing its returns by market and factor in 2022, its interest rate watch and companies in San Diego with 1 billion U.S. dollars or higher market cap.

Municipals were weaker to start May with the one-year muni approaching 2% after one of the worst-performing Aprils in more than 30 years. While the municipal bond market yields will "react to the Treasury market, Fed action, inflation expectations and other external factors", Luby and Ceffalio said demand has been building. "Even as other fixed income asset classes have struggled mightily this year, taxable municipal bonds are among the worst performers so far", noted Jason Wong, vice president of municipals at AmeriVet Securities. [Extracted from the article]

Federal Reserve Bank of St. Louis President James Bullard, speaking on Bloomberg TV Tuesday, repeated his call for aggressive action to stop inflation and that a 50 basis point rate hike "should be in the mix." "Muni bond fund redemptions have historically been elevated during tax season so redemptions may remain high and not just due to Fed rate hike fears." Municipals sold off double-digit basis points Tuesday following continued market volatility and a rapidly rising U.S. Treasury market. [Extracted from the article]

Municipals were weaker Monday, with yields rising two to five basis points, as U.S. Treasuries saw losses reversing Friday's rally, while equities ended in the red on continued geopolitical tensions between Russia and the Ukraine. "In addition, the Fed has recently focused on its dual mandate of maintaining employment and moderate inflation vs. its prior sole focus on its ill-advised 2% inflation ceiling." Researchers found that consumers have changed their views on inflation, with some "short-term movements in inflation expected to persist into the future", a New York Fed blog post said. [Extracted from the article]

The 10-year yield sat at 1.15% and the 30-year yield was steady at 1.68%. The yield on the 10-year rose one basis point to 1.18% and the yield on the 30-year sat at 1.68%. And while this will remain an issue for GDP this year, he said, "the issue is clearly transitory. [Extracted from the article]