Municipal New Issuance: This past week, the negotiated calendar issued just over $10.29 billion with the largest deals of the week being the $3.4 billion State of Georgia’s SR 400 Express Lanes Project, followed by the County of Orlando Camping World Stadium Project, which issued $422 million. The Wisconsin Health and Educational Facilities Authority issued $410 million. AmeriVet served as a Co-Manager for the New York State Housing Finance Agency’s $58 million Affordable Housing Revenue Bonds (Sustainability) transaction. Issuance for the month of July totaled to $53.38 billion, bringing the year-to-date total to $336.25 billion, an increase of approximately 17% from 2024.

Municipal Secondary Trading: Secondary trading volume totaled just over $46.94 billion with 56% of secondary trading being dealer sells. According to Bloomberg, clients put roughly $6.14 billion up for the bid, down from the prior week’s number of $7.97 billion.

Municipal Spreads: For the second week in a row, munis saw bumps by an average of 12.4 basis points across the curve, with 10-year notes seeing bumps of 13.1 basis points, ending the week at 3.20%. Although we did see a rally in munis, munis underperformed Treasuries with the 10-year to muni-to-Treasury ratio now yielding 76.14%, compared to 75.9% from the prior week. We did see the muni curve flatten this past week by 3.4 basis points, closing the week out at 229 basis points.

According to LSEG Lipper Global U.S. Fund Flows Data, muni bond funds saw inflows for the second week in a row, to the sum of $973 million this past week, following the inflow of $572 million from the week prior.

This past week saw munis rallied by an average of 12.4 basis points across the curve, pushing us closer to positive territory with year-to-date returns of -.16% for the year. A lackluster employment number on Friday, coupled with the steepest downward revision to the jobs report since the Covid pandemic, sent yields lower as many moved to safer investments as equities sold off on this report. Following the news of the jobs data, munis rallied 6-7 basis points across the curve, as the chances of a potential rate cut or two later this year has increased. With this news, and August typically being the month with the second strongest reinvestment demand ($59 billion in principal and interest redemption), we could see positive returns for the month of August as many investors want to lock in higher rates before a potential September rate cut.

Municipal Supply: The negotiated calendar for the last week of July will have an expected volume of just over $13.67 billion with the largest deals of the week being the $1.5 billion City of New York General Obligation Bonds issue, which AmeriVet will be participating in the Selling-Group. The City of New York will also be issuing $263 million in taxable bonds. The Massachusetts Development Finance Agency plans on issuing $886 million. The City of Colorado Springs will issue $750 million and the Port of Seattle will issue $738 million. Additionally, AmeriVet will be participating in the Selling-Group for the Triborough Bridge and Tunnel Authority’s General Revenue Bonds issuance.

Have a great week!