The state's projected budget surplus was raised to $1.5 billion, but officials are cautious over risks of economic slowdown and the impact of COVID-19.

Policymakers may not wait until their mid-month meeting and could act with other central banks.

With each passing day, fears surrounding COVID-19 elevate as the equity sell-off pressed on. The biggest winners have and will continue to be muni issuers, as they are selling into a record low rate market.

Taxable bonds and COVID-19 are two of the main catalysts that helped February municipal bond volume ascend to its highest level since at least 1986.

The Federal Reserve is monitoring the COVID-19 issue and its economic effects, according to a release from the central bank, attributed to Chairman Jerome Powell, released Friday.

Federal Reserve Bank of St. Louis President James Bullard said the Fed is ready to act if the COVID-19 virus develops into a destabilizing force.

Municipal market technicals were already driving performance and so the strong quality bid has deepened the rally across the curve as the asset class really didn’t need to grab the U.S. Treasuries coattails all that tightly.

It’s too soon to judge the potential impact of the coronavirus outbreak on the U.S. economy or consider a monetary policy response, Chicago Fed President Charles Evans said.