Municipal New Issuance: Last week, the negotiated calendar totaled to just over $7.89 billion with the largest deals of the week being the $1.1 billion Black Belt Energy Gas District issue, followed $430 million Central Florida Expressway Authority. The Ohio Water Development Authority issued $400 million this past week as well. AmeriVet participated in the Selling-Group for the South Carolina State Housing Finance and Development Authority which issued $150 million in tax-exempt bonds and $100 million in taxable bonds.

Municipal Secondary Trading: Secondary trading volume for the week totaled to just over $52.43 billion, with 53% of secondary trading being dealer sells. According to Bloomberg (MBWDPAR Index), clients put approximately $5.12 billion up for the bid, a notable increase from the prior week’s bids wanted total of $3.42 billion.

Municipal Spreads: Munis experienced some small cuts in the front end while the remainder of the curve was unchanged or experienced some small bumps in yields. Yields on 10-year notes remained unchanged for the week at 2.91%. Munis did underperform Treasuries with 10-year muni-to-Treasury ratio now yielding 66.51%, compared to 65.21% from the prior week. We did see the yield curve flatten this past week by 3.6 basis points to close the week at 182 basis points.

According to LSEG Lipper Global U.S. Funds Flows Data, muni bond funds continue to see positive fund flows as muni bond funds saw investors add about $633 million to muni bond funds this past week. This follows prior week’s inflow of $1.19 billion.

Munis for the week saw modest gains with the long end seeing the largest gains of about 5-6 basis points while the 2027-2028 maturities seeing just a 2-basis point bump, the 2029-2034 maturity range saw a 1-2 basis point cut, and the 2034-2038 maturities were left unchanged. The market was supported by favorable technicals, with investors reinvesting proceeds ahead of the July 1 coupon and redemption season, keeping demand for high-grade tax-exempt bonds elevated. With the gains this week, returns for the month rose up to .80% with year-to-date returns reaching above 2%. For the month of June, the long end saw the largest gains with 1.50% returns, while the 1–2-year ranges saw just .32% gains for the month, and the 10-year range is currently at .52% gains.

Municipal Supply: With the July 4^th holiday shortened week, the negotiated calendar will be light with an expected volume of just over $3.58 billion. The Massachusetts Development Finance Agency will be issuing $298 million this week while the City of Manchester, New Hampshire plans on issuing $234 million. AmeriVet will be serving as a Co-Manager on the $113 million Board of Regents of the University of Texas System which will be issuing Revenue Financing System Bonds. AmeriVet will also be participating in the Selling-Group for the $150 million Homeowner Mortgage Revenue Bonds issuance by the Florida Housing Finance Corporation.

Have a great week!