AmeriVet Weekly Muni Snapshot

Municipal New Issuance: The negotiated calendar last week had a total volume of just over $11.7 billion with the largest deals of the week being the $ 663 million State of California, followed by the City of Chicago which issued 646 million. The Southern California State Public Power Authority issued $589 million. AmeriVet was a selling group member on the $52 million Minnesota Housing Finance Agency issue.

Municipal Secondary Trading: Secondary trading volume for last week totaled to just over $43.51 billion, with 52% of secondary trading being dealer sells. According to Bloomberg (MBWDPAR Index), clients put just over $5.19 billion up for the bid, which is an increase from the prior week’s bids wanted total of $4.87 billion.

Municipal Spreads: Munis saw some slight bumps across the curve as yields fell by an average of just 1.8 basis points across the curve with yields on 10-year notes falling by 2.3 basis points to end the week at 2.93%. With yields falling, munis were able to slightly outperform Treasuries as the 10-year muni-to-Treasury ratio is now yielding 67.14% compared to 67.56% from the prior week. The muni curve remained unchanged for the week at 192 basis points.

Demand remained supportive to the market with continued positive fund flows as muni bond funds saw investors add about $1.1 billion to muni bond funds this past week. This follows prior week’s inflow of $615 million according to LSEG Lipper Global U.S. Funds Flows Data.

Munis were little changed this past week with the 2027-2034 maturities seeing a bump of just 1-2 basis points, while the 2035-2049 maturities saw a 2 basis point bump, and the 2050-2056 maturity range experienced a 1 basis point bump. With munis being relatively quiet this past week, returns for the month currently stand at .21%, brining total year-to-date returns to 1.18%. Technicals stayed constructive thanks to steady investor interest in tax-exempt income, keeping munis attractive on a taxable-equivalent basis versus Treasuries. Credit fundamentals held steady with the market digesting mixed economic data and geopolitical developments with limited reaction.

Municipal Supply: The negotiated calendar for the week will have an expected volume of just over $9.83 billion with the largest deals of the week being the $1.1 billion Airport Commission of the City and County of San Francisco transaction, followed by the $1.1 billion Dormitory Authority of the State of New York. The City of Atlanta plans on issuing $1 billion of Water and Wastewater Revenue and Refunding Bonds. The State of Connecticut plans on issuing $820 million in tax-exempt GO bonds and $300 million in taxable GO bonds which AmeriVet will be participating in the Selling-Group. AmeriVet will be serving as a Co-Manager for the Massachusetts Housing and Finance Agency this week which plans on issuing Single-Family Housing Revenue Bonds consisting of $142 million in tax-exempt bonds and $27 million in taxable bonds.

Have a great week!