Fixed income markets were generally weaker, as questions about the efficacy and longevity of QE2 are debated in the market. Treasuries yields were mostly higher by week's end, although they were stronger from the lows put in at the start of the week. The municipal market continued to struggle through another week of mountainous supply. Fixed Income Commentary, November 19, 2010 November 19, 2010 20101119

Fixed income markets were generally weaker, as questions about the efficacy and longevity of QE2 are debated in the market. Treasuries yields were mostly higher by week's end, although they were stronger from the lows put in at the start of the week. The municipal market continued to struggle through another week of mountainous supply.

Fixed income markets were generally weaker, as questions about the efficacy and longevity of QE2 are debated in the market. Treasuries yields were mostly higher by week's end, although they were stronger from the lows put in at the start of the week. The municipal market continued to struggle through another week of mountainous supply. In addition, the potential that tax-exempt supply would grow exponentially next year, if Build America Bonds legislation is not extended, also weighed on the market. In this environment, the municipal yields were repriced upwards by amounts not seen even during the depths of the financial crisis. General Motors successfully returned to market as a public company, although its legacy bonds traded down in a case of "buy the rumor, sell the truth." On the other hand, Harrah's was not able to come to market, with its $24 billion debt load cited as a major investor concern. Liquidity issues will likely become more severe as we near the end of the year.

We wish all of our readers a safe and happy Thanksgiving holiday. We will not publish the Weekly Commentary next week, but will return on December 3, 2010.