[Fredslist] Fixed Income Commentary

[Dichter, Dan [PVTC]]

The rebound in retail sales numbers contributed to the weaker Treasury
market going into the holiday weekend on Thursday.  This morning, the
markets are firm in quiet trading as the Empire State manufacturing
number expanded at a slower rate than the street estimates.  The lack of
new issue volume continues to play a significant role in the municipal
market's performance.  First quarter volume was the lightest in four
years and year-over-year, new issue volume was off over 29%.  While the
Treasury market's generally flat yield curve hovers around 5%, the
municipal market continues to provide a positive yield curve.  The lack
of new issues and the continued demand have kept municipal yields from
rising, other than in the short end.  Ten year municipals yield about
ten basis points more than they did when the Fed began tightening in
June, 2004, with longer dated bonds yielding less than they did then.

_______________________________________
Daniel G. Dichter
Second Vice President - Wealth Management
Smith Barney | Citigroup Global Markets, Inc.
31 West 52nd Street, 23rd Floor
New York, NY 10019
p. (212) 603-6178
f.  (212) 307-3863
dan.dichter at smithbarney.com



--------------------------------------------------------------
Reminder:  E-mail sent through the Internet is not secure.
Do not use e-mail to send us confidential information
such as credit card numbers, changes of address, PIN
numbers, passwords, or other important information.
Do not e-mail orders to buy or sell securities, transfer
funds, or send time sensitive instructions. We will not
accept such orders or instructions.  This e-mail is not
an official trade confirmation for transactions executed
for your account.  Your e-mail message is not private in
that it is subject to review by the Firm, its officers,
agents and employees.
--------------------------------------------------------------
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://www.gothamnetworking.com/pipermail/fredslist/attachments/20060417/abc6c3ab/attachment.html