AmeriVet Weekly Muni Snapshot

Municipal New Issuance: The negotiated calendar for the last week totaled to just over $8.2 billion with the largest deal being the $825 million New York City Water issue which AmeriVet was in the selling group. The next largest deal of the week was the Los Angeles Department issued $772 million. AmeriVet was also in the selling group on the $702 million Massachusetts Clean Water Trust as well as the New York City Housing Development Corporation which Issued $197 million and $152 million.

Municipal Secondary Trading: Secondary trading volume totaled to approximately $37.77 billion, with 52% of secondary trading being dealer sells. According to Bloomberg (MBWDPAR Index), clients put roughly $3.61 billion up for the bid, which is a decrease from the prior week’s total of $5.61 billion.

Municipal Spreads: This past week, muni yields rose by an average of 5.8 basis points with yields on 10-year notes rising by 6.7 basis points to 2.65%. With yields rising this past week, munis did underperform Treasuries with the 10-year muni-to-Treasury ratio now yielding 62.71%, compared to 61.24% from the prior week. We did see the muni curve steepen by 8.1 basis points to end the week at 198 basis points.

According to LSEG Lipper Global U.S. Fund Flows data, investors added roughly $994 million to muni bonds funds over the past week. This follows the prior week’s inflow of $1.8 billion.

Munis saw large cuts over the past week, with the long-end seeing the largest cuts of 7-9 basis points while the front-end just saw 2-3 basis point cuts. The sell off in munis were a result of geopolitical tensions between the US and Europe regarding Greenland which sent Treasury yields higher and munis following suit. This sent returns for the month to .64%, down from the prior week’s total monthly return of .93%. With President Trump backtracking on his tariffs threats related to Greenland, we should expect to see munis rally once again.

Municipal Supply: The negotiated calendar for the week will have an expected total volume of just over $3.1 billion with the largest deal of the week being the $369 million Florida Development Finance Corporations followed by the Connecticut Housing Finance Authority issue which plans on issuing $269 million in taxable bonds and $20 million in tax-exempt bonds which AmeriVet will be participating in the Selling-Group. The next largest deal will be the Miami-Dade County Industrial Development Authority which plans on issuing $245 million.

Have a great week!