Municipal New Issuance: For the third week of July, the negotiated calendar had a total volume of just over $10.6 billion for the week with the largest deal of the week being the $2.5 billion New York City Transitional Finance Authority Future Tax Secured Subordinate Bonds issuance which AmeriVet participated in the Selling-Group. The second largest deal of the week was the Regents of the University of California which issued $1.4 billion in General Revenue Bonds. The Metropolitan Transportation Authority (MTA) of New York City issued $389 million which AmeriVet also participated in the Selling-Group.

Municipal Secondary Trading: Last week, secondary trading totaled to approximately $34.38 billion with 53% of trades being dealer sells. Clients’ bids-wanted was relatively quiet this past week as clients put up just over $4.83 billion for the week with Tuesday having the largest volume of bids-wanted according to Bloomberg data.

Municipal Spreads: Munis continue to improve this week as yields continue to fall with 10-year notes falling by 1.4 basis points to end the week at 2.80%. With yields falling this past week, munis were able to outperform Treasuries as 10-year notes are now yielding 66.13% of Treasuries compared to the prior week when the 10-year ratio was at 67.35%. The muni curve did steepen this past week with the curve steepening by .9 basis points to 82 basis points.

According to LSEG Lipper Global Fund flows data, investors added roughly $891 million to municipal bond funds. This follows the prior weeks inflow of $775 million and the third week in a row of inflows. Muni bond fund inflows continue to show that investors are gaining confidence in the muni markets as we anticipate a potential rate cut in September. This was the largest inflow into muni funds since May of this year.

The summer continues to be good for munis as yields have fallen an average of 33 basis points since the start of June. The front end of the curve is showing the strongest gains as yields fell by an average of 36 basis points, the belly of the curve falling by an average of 30 basis points, and the long end by 25 basis points. With this rally this month, munis have been able to push further into the green with a year-to-date return of .34% and a month-to-date return of .78%. Currently, we are about a half a point above of where we started at at the beginning of this year and we could see yields move closer to positive levels as the Fed meets later this month which will give us a better understanding of when the Fed will cut rates.

Municipal Supply: For the fourth week of July, the negotiated calendar will have an expected volume of just under $9 billion with the largest deal of the week being the $1.4 billion Texas Transportation Commission Central Texas Turnpike System Revenue/Refunding Bonds issuance. The second largest deal of this week will be the $900 million South Carolina Public Service Authority Revenue/Refunding issuance consisting of tax-exempt and taxable bonds. AmeriVet will be in one issue this week as a Co-Manager for the Metropolitan Pier and Exposition Authority which will be issuing $134 million for the McCormick Place Expansion Project Refunding Bonds Series 2024A and 2024B (Taxable).