AmeriVet Weekly Muni Snapshot
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Municipal New Issuance: This past week, the negotiated calendar issued just over $10.8 billion, with the largest deals of the week being the $1.6 billion Texas Transportation Finance Corporation transaction, followed by the $1.5 billion General Obligation Bonds, Fiscal 2026 Series D issuance from the City of New York, which AmeriVet participated in as a Selling Group Member. The Kentucky Public Energy Authority issued $642 million. AmeriVet also participated as a Selling Group Member in two other issues this week, being the $195 million South Carolina State Housing Finance & Development Authority’s Mortgage Revenue Bonds, and $50 million in State Appropriation Bonds (Housing Infrastructure) from Minnesota Housing Finance Agency. |
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Municipal Secondary Trading: Secondary trading volume totaled about $40.50 billion, with 53% of secondary trading being dealer sells. According to Bloomberg, clients put roughly $5.12 billion up for the bid, down from the prior week’s number of $5.24 billion. |
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Municipal Spreads: This past week, muni yields fell slightly by an average of about 4.8 basis points across the curve, with yields on 10-year notes falling by 2.7 basis points to 2.85%. Munis did outperform Treasuries this past week, as the 10-year muni-to-Treasury ratio is now yielding 70.32%, compared to 69.83% from the week prior. One month ago, the ratio was at 70.71%. We did see the muni curve flatten over the past week by 9.6 basis points, ending the week at 189 basis points. |
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According to LSEG Lipper Global U.S. Fund Flows data, investors added $966 million to muni bond funds last week. This follows the prior week’s inflow of $1.1 billion. The front end continues to see some weakness with 2026-2029 maturities experiencing a 2-5 basis point cut, while the remainder of the curve saw a 1-5 basis point bump this past week. Due to these cuts experienced in the front end, returns for the month are about flat while the long end continues to show strength, with returns of about .84%. We are just a week and a half into the month, and muni returns for October are at about .53%, which brings year-to-date returns to 3.19%. Back in July, munis were down .55% for the year. Yields on the front end continue to rise and continue to cheapen versus Treasuries: since September 22nd, the 2-year muni-to-Treasury ratio has risen by over 9 percentage points, and the 5-year muni-to-Treasury ratio has risen by over 5 percentage points. Both the 10-year and 30-year ratios have fallen by over 1 percentage point.
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Municipal Supply: Supply for the week of October 13th will have an expected volume of just over $9.3 billion, with the largest deal of the week being The City of New York’s $1.7 billion General Obligation Bonds Fiscal 2026 Series E, consisting of a Subseries E-1 Taxable Bonds issuance and a Subseries E-2 Taxable Social Bonds issuance. AmeriVet will be participating in this deal as a Selling Group Member. The next largest deal of the week will be the $1.6 billion in State Sales Tax Revenue Bonds, Series 2025A (Tax-Exempt) from the Dormitory Authority of the State of New York. AmeriVet will be serving the New York State Housing Finance Agency as a Co-Managing Underwriter for their $503 million Affordable Housing Revenue Bonds issuance. Have a great week! |
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