Municipal New Issuance: The second week of the new year had just over $4.6 billion in negotiated issuance which was above the prior weeks calendar. The largest deal of the week was the taxable $1.3 billion Baylor, Scott & White Holdings issue which used a corporate cusip. The next largest issue for the week was the $465 million Pennsylvania Turnpike Commission revenue bonds. Cook County also issued to separate types of bonds $340 million general obligation refunding bonds and $173 million in sales tax revenue bonds.

Municipal Secondary Trading: The second week of trading for the new year had roughly $26.6 billion in secondary trading with the bulk of the trading coming from client buying. With the lack of supply many customers had to look into the secondary market for their investment needs. Customer bids-wanted were only up slightly for the week with only $2.9 billion in bids-wanted, the previous week we saw $2.7 billion.

Municipal Spread: The second week of trading for the new year had roughly $26.6 billion in secondary trading with the bulk of the trading coming from client buying. With the lack of supply many customers had to look into the secondary market for their investment needs. Customer bids-wanted were only up slightly for the week with only $2.9 billion in bids-wanted, the previous week we saw $2.7 billion.

On Thursday of last week, we were finally able to get a small glimpse of President elect Joe Biden’s economic stimulus package would provide. Currently his plan will provide the much needed $350 billion in aid to municipal governments more than double what their republican counterparts were willing to give. The measure proposal has enough to cover the immediate budget shortfalls caused by the shutdowns from the coronavirus. This plan also included $20 billion to public transits agencies like the New York MTA which saw its revenues drop as people started to work from home. With this proposed package sent Treasury, and Municipal yields higher.

Municipal Supply: With the Martin Luther King Holiday on Monday the negotiated calendar for the week will be slightly below average with around $4.97 billion in negotiated issuance. The largest deals and the main focus for investors will be the $1.45 billion New Jersey Turnpike Authority taxable and tax-exempt refunding bonds, as well as the $1 billion NY & NJ Port Authority. Foothill-Eastern Transportation Corridor agency will also be bringing $785 million in tax-exempt bonds.