Municipal New Issuance: With the Thanksgiving holiday this past week, muni issuance was very light with just $1.5 billion in issuance. The largest deals of last week were the $218 million KATY Texas Independent School District, followed by the $209 million Aerotropolis Regional Transportation Authority.

Municipal Secondary Trading: With just four trading days last week, secondary trading totaled to just over $24.5 billion for the week with 55% of all trades being dealer sells with Tuesday having the largest volume of trades. With the light trading this past week, we also saw light clients bids-wanted as clients put up just over $3 billion up for the bid according to Bloomberg data.

Municipal Spreads: For the last week in November, muni yields fell by an average of 12.3 basis points across the curve with yields falling the most in the long end. We did see the yields on 10-year notes fall by 12.1 basis points this past week to end the month at 2.83%. At the start of the month, yields were above 3% on 10-year notes. Although we did see yields fall last week, munis did underperform Treasuries as the 10-year muni-to-Treasury ratio is now yielding 67.94% compared to 67.12% from the previous week. We did see the muni curve flatten by 11.5 basis points to 94 basis points.

Munis ended the month in the green with month-to-date returns totaling to 1.73% for the month, pushing year-to-date returns to 2.55%. This is the best return we have seen this year, passing the previous high in June of this year when we saw returns of 1.53%. With munis rallying this month, we continue to see munis outperform Treasuries as ratios across the curve fell by roughly 3-6 percentage points with 30-year munis being their richest since January 2022. With October seeing negative returns, investors saw an opportunity to grab higher absolute yields this month in anticipation of the Fed’s potential 25 basis point cut on December 18^th. We are in an interesting pocket on time going into December as investors are expected to see over $36 billion in principal payments, approximately $15 billion in interest payments, and about $12.8 billion in visible supply. We should expect to see December returns push overall 2024 returns even higher as December has been historically favorable to munis.

Municipal Supply: For the first week of December, the negotiated calendar will total to $12.78 billion with the largest deal of the week being the $1.5 billion New Jersey Transportation Trust Fund Authority issuance. The next largest deal of the week will be the $804 million Greater Orlando Aviation Authority Airport Facilities Revenue Bonds issuance which AmeriVet will be serving as a Co-Manager on. AmeriVet will also be serving as a Co-Manager on two other deals, the first being the $768 million State of Connecticut Special Tax Obligation Bonds issuance. AmeriVet will be serving as a Co-Managing underwriter for the  New Jersey Housing and Mortgage Finance Agency which will be issuing $272 million in tax-exempt bonds and $69 million in taxable bonds. AmeriVet will also be participating in the Selling-Group for the $178 million Maryland Community Development Administration Multi-Family Development issuance with Series D-1 being Fannie Mae MBS-Secured and Series D-2 being Cash-Collateralized.