Municipal New Issuance: With the July 4^th holiday this past week, the negotiated calendar totaled to just over $2.64 billion with the largest deals of the week being the $978 million Massachusetts Bay Transportation Authority Senior Sales Tax Bonds issuance, followed by the Los Angeles Unified School District which issued $308 million Judgement Obligation Bonds.

Municipal Secondary Trading: Secondary trading volume totaled to just over $34.50 billion last week with 56% of secondary trading being dealer sells. According to Bloomberg, clients put roughly $2.81 billion up for the bid, a decrease from the prior week’s total of $4.71 billion.

Municipal Spreads: With the holiday shortened week, munis had some mixed results with the front-end seeing bumps along the curve while the long-end saw some cuts, with 10-year notes seeing just seeing a 2-basis point bump to end the week at 3.21%. With Treasuries yields rising last week and munis for the most part unchanged, munis did outperform US Treasuries as the 10-year muni-to- Treasury ratio is now yielding 73.80% compared to 76.12% from the prior week. The muni curve continues to steepen with the curve now at 198 basis points which compared to last week, it was at 190 basis points.

According to LSEG Lipper Global US Fund Flows data, muni bond funds added $462 million to their funds this past week which follows the prior week’s inflow of $195 million and marks the 10^th straight weeks of inflows.

With a stronger than expected Jobs report for June with the report showing an increase of 147,000 in payrolls and unemployment falling to 4.1%, making the odds of a July rate cut an all but off the table scenario, US Treasuries went into a sell off. The probability of a rate cut in September also lowered to a 75% chance as we are in interesting pocket of time in which the Fed Chair Jerome Powell will continue his wait and see approach as President Trump will continue to push for a rate cut. With munis staying unchanged from the release of the jobs report, munis continued to outperform Treasuries this week ratios in the 2-10 year range fell by an average of 1.64 percentage points, however, the 30-year muni-to-Treasury ratio did cheapen by just .58 percentage points.

Municipal Supply: The negotiated calendar for the week will have an expected volume of approximately $10.84 billion as issuers return to the markets after the July 4^th holiday. The most notable and largest deals of the week, which AmeriVet will be serving as a Co-Managing Underwriter on, will be the Trustees of the California State University which will issue $1.61 billion in tax-exempt bonds and $113 million in taxable bonds. Additionally, the Washington Metropolitan Area Transit Authority will issue $653 million this week, the Spring Independent School District will issue $590 million, and  the Southern California Public Power Authority plans on issuing $428 million for their Southern Transmission System Renewal Project.

Have a great week!