Municipal New Issuance: Last week, the negotiated calendar for the week totaled to just over $9.5 billion with the largest deal being the $1.1 billion Houston Texas Airport for the United Airlines Terminal Improvement Project. The next largest deal of the week was the $775 million California Community Choice Financing Authority Clean Energy Project. AmeriVet served as a Co-Manager on three deals this past week with the first being the $606 million State of Connecticut Special Tax Obligation Bonds issuance for Transportation Infrastructure Purposes. Secondly, the $215 million Wisconsin Housing and Economic Development Authority Home Ownership Revenue Bonds issuance, and lastly, the $149 million Massachusetts Housing Finance Agency Single-Family Housing Revenue Bonds issuance which were mostly federally taxable. This past week, municipal issuance surpassed $460 billion for the year, passing the previous record of $457 billion back in 2021.

Municipal Secondary Trading: Secondary trading totaled to just over $44.93 billion with 53% of all secondary trading being dealer sells and with most of the trading being done on Wednesday. According to Bloomberg, clients put up approximately $5.96 billion up for the bid with the largest amount of bids-wanted being on Wednesday. This is down from the previous weeks total of $6.09 billion, despite only having only four trading days.

Municipal Spreads: Muni yields fell this past week with yields falling an average of 3.1 basis points across the curve with yields on 10-year notes falling by 2.4 basis points over the past week. With yields falling this past week, munis were able to outperform Treasuries this past week with the 10-year muni-to-Treasury ratio now yielding 66.90% compared to the prior week when the ratio was at 67.07%. With muni yields falling this past week, we did see the muni curve flatten by 3.3 basis points to 106 basis points.

For the 21^st consecutive week in a row, muni bonds saw investors add to their funds, with this past week investors adding about $1.3 billion, this follows the prior weeks inflow of $305 million. Over the past three weeks we have seen muni funds record inflows of about $3 billion of the last three weeks, this compares the average monthly inflow of about $2 billion in the first two months of the year. This is a sign that investors are looking to take advantage of higher yields before we see any more rate cuts.

This month, munis have done a complete 180 compared to last month in which we saw munis lose about 1.46% for the month, bringing year-to-date returns below 1%. With just one week left in the month of November, munis have a positive return of .88% and are pushing year-to-date returns back over 1% to 1.69%. With this rally, munis have been able to outperform Treasuries as Treasuries are in the red at .59%, with a marginal gain of just .76%. With munis outperforming this month, munis continue to be expensive when compared to Treasuries, more in particularly in the long end as the 30-year ratio hit its richest point since January of 2022.

Municipal Supply: With the Thanksgiving holiday this week, the negotiated calendar will have an expected volume of just over $1.2 billion with the largest deals being the $205 million Aerotropolis Regional Transportation Authority followed by the $188 million Westfield Washington Multi-School Building Corporation.