Municipal New Issuance: Last week, the negotiated calendar for the week totaled to approximately $10.2 billion for the week with the largest deal being the New Jersey Transportation Trust Authority issue which issued a two-part tax-exempt deal of $1.8 billion and $823 million, and a $688 million taxable portion totaling to $3.2 billion. The City of Chicago issued $1.56 billion for the Chicago O’Hare Airport.

Municipal Secondary Trading: With just four trading days last week that totaled to just over $33.7 billion for the week, 54% of all secondary trading was dealer-sells and the majority of the trading was done on Wednesday. According to Bloomberg, clients’ put up roughly $4.89 billion up for the bid which is a increase from the prior week’s bids-wanted total of $4.70 billion.

Municipal Spreads: This past week, munis yields on 10-year notes fell by 1.9 basis points to end the week at 2.72%. With the rally in munis this past week and Treasuries weaker, munis were able to outperform Treasuries slightly with the muni-to-Treasury ratio now yielding 67.10%, versus the prior week when the ratio was at 67.15%. We did see the muni curve flatten last week as the curve flattened by 3.8 basis points to 115 basis points.

For the 16^th consecutive week, muni bond funds saw investors add to their funds this past week. According to LSEG Lipper US Fund Flows data, investors added approximately $1.7 billion to those funds which follows the prior weeks inflow of $419 million. With the continuation of inflows, this is a positive sign for the muni market overall as investors are showing confidence that rates will continue to come down.

With this rally in munis, we continue to see munis teetering on being rich versus Treasuries with ratios falling on 2 year munis to 62.70%, a .7 percentage point richer than last week, 5 year munis falling by .44 percentage points to 63.28%, the 10 year munis by .45 percentage points to 66.70%, and the 30 year by .78 percentage points to 83% . Although we did see the long end richen the most, we still see value in that range as we continue to expect that the Fed will continue to cut rates two more times this year. After two straight weeks of yields rising, munis rallied this past week with yields falling an average of 3 basis points across the curve, with the front end dropping by roughly 1.2 basis points, the belly of the curve by 2 basis points, and the long end by 4.5 basis points. With this slight rally, this brings October returns to -.56% and year-to-date returns to 1.72%.

Municipal Supply: This week, the negotiated calendar will have an expected volume of $10.9 billion, with the largest deal of the week being the $1.5 billion New York City Transitional Finance Authority which AmeriVet will be participating in the Selling-Group. The second largest deal of the week will be the $1.5 billion New York Transportation Development Corporation issuance for the JFK Airport Terminal 6 Redevelopment Project. AmeriVet will be a Selling-Group-Member for the $488 million Metropolitan Transportation Authority Transportation Revenue Refunding Green Bonds issuance. AmeriVet will also be in the $40 million Maryland Department of Housing and Community Development Residential Revenue Bonds issuance as a Selling-Group-Member. Currently, muni issuance stands at $409 billion for the year, a 43% increase from the prior year.