BondDesk Sets All-Time Record for Muni Bond Trading Volume

"The municipal bond market has seen exceptionally large selling from institutions since the Fed meeting last Wednesday," Bagley said in a statement. "This week, individual investors provided support for the market and drove yields down across the board by buying bonds at unprecedented levels. This buying was driven by an ability to buy 5.00% coupon bonds at par on a wide variety of quality municipal credits."

The month-to-date fill rate for municipal bond orders placed against firm bids on the BondDesk ATS has been 98.8%, a remarkable fact given the market volatility during June, Bagley noted.

"While Bid Wanteds on our platform are nearing historically high levels above 10,000 per day, a sign of major selling pressure, there were almost five investor buys for every sell this past week, indicating that retail investors are jumping into the market to take advantage of higher rates," he concluded.

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Check out What's at Stake for Muni Bond Investors in Detroit Insolvency  on AdvisorOne.