The Market’s appetite for municipal bonds Is likely to pick up, according to Hilltop Securities. Tom Kozlik, municipal policy strategist, said, “The tone of the market-conversation changed quickly. Just a week ago investors were debating whether the Federal Reserve would hold steady into the new year. Now the odds of a Dec. 10 rate cut are not just more than likely. A cut is now expected. Fed futures are pricing in close to 100% probability and the announcement from San Francisco Fed President Mary Daly supporting a cut only added fuel to the fire at the beginning of last week. Think about that for a moment. Just about two weeks ago many were wondering if the Fed would pause. Now we are back to expecting another cut and soon. That means the market’s appetite for municipal bonds is likely to pick up.”

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