Municipal New Issuance: For the first week of February, the negotiated calendar had a volume of just over $6.85 billion for the week with the largest deal being the $865 million San Joaquin Valley Clean Energy Authority Clean Energy Project Revenue Bonds issuance which featured a Green Bonds designation. The second largest deal of last week was the $864 million Southeast Energy Authority which issued Energy Supply Revenue Bonds. Dallas Independent School District issued $608 million this past week and was the third largest deal.

Municipal Secondary Trading: Secondary trading for the week totaled to over $41.13 billion with 53% of all secondary trading being dealer sells and the bulk of the of secondary trading volume being executed on Wednesday. According to Bloomberg, clients put approximately $5.63 billion up for the bid which a slight increase from the prior week’s bids-wanted volume of $5.55 billion.

Municipal Spreads: For the first week of February, muni yields fell by an average of 8.2 basis points with yields on 10-year notes falling by 9 basis points to 2.97%. With yields falling this past week, munis were able to outperform Treasuries once again as ratios on the 10-year muni-to-Treasury ratio is now yielding 66.01% compared to the prior week when the ratio was at 67.34%. We did see the muni curve steepen as well this past week by 5.3 basis points to end the week at 130 basis points.

According the LSEG Lipper Global Funds Flow data, muni bond funds added roughly $1.1 billion over the past week. This follows the prior week’s inflows of $742 million. We did see the long-end gain approximately $534 million on inflows while the intermediate funds experienced inflows of about $228 million. High Yield funds continue to gain traction as those funds saw inflows of $330 million.

Munis continued the January rally going into the first week of February as returns for munis for the first week were .43% bringing returns for the year to .94% for the first time this year. With munis continuing to rally this year, munis continue to outpace Treasuries as we continue to see ratios in the front end richen relative to Treasuries. Ratios from the 2–10-year range have lowered by roughly 2 percentage points since the start of the year, while 30-year munis have cheapened relative to Treasuries by almost 4 percentage points and have steadily risen since its low of 78.43% back in early December 2024, indicating the relative attractiveness of the long end as we continue to expect lower rates for 2025. This is evident as we have seen roughly $2.8 billion of inflows in the long end since the start of the year.

Municipal Supply: The negotiated calendar for the week will have an expected volume of approximately $8.37 billion with the largest deals being the $1.5 billion New York City Transitional Finance Authority Future Tax Secured Subordinate Bonds issuance which AmeriVet will be participating in the Selling-Group. The next largest deal of the week will be the $852 million State of Hawaii Airports System Revenue Bonds issue followed by the $810 million State of Ohio GO issue. AmeriVet will also be participating as a Selling-Group-Member for $250 million Maryland Community Development Administration issue which will consist of taxable bonds and tax-exempt bonds, the $100 million New Mexico Finance Authority Senior Lien Public Project Revolving Fund, the Florida Housing Finance Corporation’s Homeowner Mortgage Revenue Bonds issue which will be issuing $75 million in taxable bonds and $75 million in tax-exempt bonds, and the Connecticut Housing Finance Authority which will be issuing $73.8 million in taxable bonds and $47 million in tax-exempt bonds.