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Hormuz deal likelihood falls — but leaves munis unscathed
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U.S. Treasuries cheapened and equities ended lower as a deal to reopen the Strait of Hormuz seemed further away.
"The rates market is turning around under a mix of macroeconomic and geopolitical cross-currents," said James Pruskowski, managing director at Hennion & Walsh.
Chief among the cross-currents is Iran's plan to block U.S. and Israeli ships from the Strait of Hormuz , upending hopes for a deal and reigniting inflation fears.
It's why deals are being bumped double digits, and secondary trading volume is surging," Pruskowski said.
High-yield funds saw inflows of $530.3 million compared to outflows of $300 million the previous week.