Municipal New Issuance: The negotiated calendar last week totaled to just over $9.9 billion with the largest deal of the week being the $1.4 billion Texas Gas Acquisition issue. The second largest deal of the week was the $667 million Utility Debt Securitization Authority of New York issue. AmeriVet was in 3 deals this past week as a Selling-Group-Member which were the $475 million Maryland Department of Housing and Community Development, the $356 million University of Connecticut refunding issue, and the $61 Minnesota Housing Finance Agency issuance.

Municipal Secondary Trading: Secondary trading for the first full week of November totaled to roughly $5.33 billion with 51% of trades being dealer sells. According to Bloomberg, clients put up roughly $8.13 billion up for the bid, down from the prior weeks total of $9.81 billion.

Municipal Spreads: For the second straight week, muni yields fell as 10-year yields fell by 10.4 basis points to end the week at 3.26%. Just one month ago, yields on 10-year notes were at 3.37%. With the drop in yields, munis were able to outperform Treasuries as 10-year notes are now yielding 70.75% of Treasuries compared to 73.73% from the previous week. We did see the muni curve flatten this past week slightly by .03 basis points to 87 basis points.

For the 10^th consecutive week in a row, municipal bond funds saw investors pull their investments out of their funds to the sum of $151 million last week according to LSEG Lipper Global Fund Flows Data. This follows the prior weeks outflow of $1.5 billion.

November continues to be off to a strong start as yields have fallen an average of 34 basis points across the curve since the start of the month. The gains this month has pushed our year-to-date returns back into positive territory as we try to end the year positive. In the first two weeks of November, we have seen positive returns of roughly 2.61% with the majority of the gains coming from the long end with bonds gaining about 4.33%, while 10-year bonds saw 2.21%, and bonds maturing in 2 years saw modest gains of .55%. November gains have erased all of October losses as munis continue to try and avoid three consecutive down months. As long as the CPI number doesn’t surprise us with higher-than-expected inflation on Tuesday, we can expect the Fed to be finished with their most aggressive tightening cycle in four decades.

Municipal Supply: The negotiated calendar this week will have an expected volume of about $7.35 billion with the largest deal being the $1.25 billion New Jersey Transportation Trust Fund Authority issue, followed by the $1.22 billion District of Columbia issuance. The Indianapolis Local Public Improvement Bond Bank plans on selling $536 million. AmeriVet will be participating as a Co-Manager this week on the $177 million Massachusetts Housing Finance Agency issuance. As a Selling-Group-Member, AmeriVet will be participating on the $14.6 million Maryland Department of Housing and Community Development issuance.