Municipal bond market and tax exemption. Funds schools, hospitals, and utilities; a change in tax treatment reprices every state.
What to watch: Muni-Treasury ratio; tax-exemption legislation. It arrives weekly, and the effect typically lasts years.
It sits in tier 4 — Stock and sector specific: Moves one company or one group, not the market. Any factor here becomes tier one if it gets large enough — a bank failure and a pandemic both started as somebody's sector news.
Its neighbourhood
Everything this entry connects to directly. Click any point to follow it.
Sectors it moves most
Also in Liquidity and market plumbing
- Financial conditions
- Bank reserves and the Fed balance sheet
- Reverse repo facility (RRP)
- Treasury General Account (TGA)
- Repo and money-market rates
- Money market fund assets
- Money supply (M2)
- Global central bank liquidity
- Emergency lending facilities and discount window
- Treasury market liquidity and basis trades
- Stablecoin demand for Treasury bills
- Treasury buyback programme