A Quiet Start for Munis as Investors Await Supply.

The first trading session of 2024 saw municipal bonds lightly traded and little changed, while U.S. Treasuries were weaker and equities lost ground. Municipal-to-Treasury ratios decreased, with the two-year ratio at 56% and the 30-year ratio at 84%. The municipal market experienced a rebound in 2023, with a broad market index gaining 2.3% in December and finishing the year up 6.4%. High-yield munis returned 9.2% in 2023, and total municipal supply for the year was $379.992 billion. The outlook for 2024 includes higher muni yields, increased supply, and opportunities for investors. [Extracted from the article]