Municipal New Issuance: Last week, the negotiated calendar for the week totaled to approximately $9.6 billion with the largest deal being the $1.94 billion New York Transportation Development Corporation for the JFK Airport Terminal 6 which was well received in the market. The next largest deal of last week was the $1.5 billion New York City Transitional Finance Authority which AmeriVet participated in the Selling-Group. AmeriVet also participated in the Selling-Group for the $478 million Metropolitan Transportation Authority issuance.

Municipal Secondary Trading: Secondary trading totaled to just over $41.82 billion for the week with 55% of secondary trading being dealer sells with the majority of the trading being done on Thursday. According to Bloomberg, clients put up roughly $6.32 billion up for the bid as the selloff in the markets fueled many to sell as the recent economic numbers still indicate that we are in a strong economy.

Municipal Spreads: Muni yields rose sharply this past week with yields on 10-year notes rising by 27.2 basis points to end the week at 3.00%. The majority of the losses were in the first three days of the week with yields rising an average of 28.6 basis points. During the last two days of the week, munis were able to rally about 7 basis points. With muni yields rising this past week, munis did underperform Treasuries with the 10-year muni-to-Treasury ratio now yielding 70.93% compared to the prior week when the ratio was at 66.97%. With the rise in yields we did see the muni curve steepen by 4.3 basis points.

For the 17^th consecutive week, muni bond funds saw investors add to their funds this past week according to LSEG Lipper US Fund Flows data as investors added approximately $514.7 million to those funds. This follows the prior weeks inflow of $1.7 billion.

Last week, munis had their worst week of 2024 with yields rising by as much as 27 basis points which pushed yields on 10-year notes above 3% for the first time since the first week of July of this year before rallying towards the end of the week and settling at 2.99% on Friday. This selloff was due to the Treasury sell off and recent economic numbers which still indicate that we are in a strong economy as investors continue to weigh on how many more times the Fed will cut rates for the remaining of the year. With this sell off, muni returns for the month were pushed lower to -1.42% bringing the total year-to-date return to .84%. With the sell off in munis this past week, munis did cheapen compared to Treasuries with the 10-year note ratio rising by about five percentage points over a one week period, inching us closer to the 10-year average of 85.97%. Although we dipped below 1% returns for the first time since August, investors should still be buyers as we still expect the Fed to cut rates again this year, coupled with muni-to-Treasury ratio cheapening, muni buyers should take advantage of this as well as yields being higher.

Municipal Supply: This week, the negotiated calendar will have an expected volume of $9.3 billion, with the largest deals of the week being the $1.55 billion State of Washington issuance, followed by the $1.1 billion Pennsylvania Higher Educational Facilities Authority issuance for the Thomas Jefferson University. Miami-Dade County Educational Facilities Authority plans on issuing $860 million. AmeriVet will be in one issue this week as a Selling-Group-Member for the $27 million Maryland Department of Housing and Community Development Housing Revenue Bonds issuance.