Municipal New Issuance: With the shortened holiday week due to the Good Friday Holiday, the negotiated calendar totaled to $8.1 billion. The largest deal of the week was the $1.7 billion New York City GO taxable issuance which AmeriVet participated in the Selling-Group. The next largest deal of the week was the $1.3 billion Department of Airports of the City of Los Angeles, followed by the State of Oregon which issued $463 million in tax-exempt bonds and $301 million in taxable bonds.

Municipal Secondary Trading: Secondary trading continues to remain elevated with trading volume totaling to just over $49 billion for the week. As with secondary trading volume being higher than average, bids-wanted continues to remain at elevated levels with just over $6.83 billion up for the bid according to Bloomberg data.

Municipal Spreads: After a week of yields rising by almost 100 basis points, muni yields this past week fell by an average of about 15.6 basis points as market volatility remains persistent. Last week, yields on 10-year notes rose by 16.5 basis points to end the week at 3.42%. We did see munis outperform Treasuries as the 10-year muni-to-Treasury ratio is now yielding 80.15% but still is considerably lower than the highs of 88.14% on April 9^th. We did see the muni curve steepen by about 2.6 basis points to 157 basis points.

We continued to see outflows in muni bond funds this past week as investors pulled approximately $1.25 billion from those funds. This outflow follows the prior week’s outflow of $3.5 billion and is the 6^th consecutive week of outflows.

Coming off a volatile week in the prior week where we saw yields rise considerably, munis strengthened this past week as munis followed aligned in theme with Treasuries. Last week was less volatile as yields overall fell by an average of about 16.5 basis points across the curve, compared to an over 64 basis point swing from the previous week. This drop in yields can be attributed to investors taking advantage of higher yields as well as significant secondary trading. We saw signs of richening with 10-year ratios richening by 8 percentage points since their year-to-date highs from the prior week. We also saw all major ratios see significant richening as well. Even though we did see munis richen significantly over a week, they are still cheaper overall from a year ago when we saw the 5-year and 10-year ratio hovering around 58% in April 2024.

Municipal Supply: The negotiated calendar for the week will have an expected volume of approximately $12.26 billion with the largest deals being the $1.6 billion State of Connecticut GO which will also be issuing $300 million in taxable bonds. The second largest deal of this week will be the $1 billion Commonwealth of Massachusetts issuance. AmeriVet will be serving as a Co-Manager for the Los Angeles Unified School District which will issue $691 million in tax-exempt bonds and $266 million in taxable bonds. AmeriVet will also be participating in the Selling-Group for the $673 million New York City Municipal Water Finance Authority issuance.