Market Update:
Fed fund futures priced in a low probability of a September rate hike and the Fed did not disappoint by holding rates steady. The municipal market saw yields drift higher for the quarter as the Fed fund futures market show an increased probability the Fed will raise rates in December. Yields on the AAA 2, 5 and 10 year parts of the yield curve increased by 21bps, 13bps and 14bps, respectively.