The municipal situation was little changed on Monday as the market took a breather after last week’s volatility and what is expected to be the last major new issuance until well after the election. U.S. Treasuries fell and stocks rose.
According to Refinitiv Municipal Market Data, the two-year bond ratio on Monday was 64%, three-year bond ratio was 63%, five-year bond ratio was 64%, 10-year bond ratio was 70% and 30-year bond ratio was 84%. . PM EST reading. ICE Data Services was 66% two years, 65% three years, 65% five years, 70% 10 years and 84% 30 years as of 3:30 p.m.
The asset class remained in the red in October, but earlier losses narrowed. The Bloomberg Municipal Index is -1.42% in October and +0.84% year-to-date, while High Yield is -1.34% and +6.04% in 2024, while Taxable Municipality is -2.49% in October. , +2.61% so far in 2024. .
Municipal Corporations outperformed UST for the month and year, with Hubby’s return being -3.48% in October and -1.1% in 2024, while Corporate’s return was -2.25% for the month and +2.96% for the year. There is.
“Rising UST yields and continued pressure from oversupply have created a rift in the municipal market,” Darryl Clements, municipal portfolio manager at AllianceBernstein, said last week.
“Munis prices started to look bad after[last]Monday’s significant interest rate cut,” Birch Creek strategists said in a note.
The number of bids increased, with offers generally showing a difference of about 5 basis points, while bids decreased by 10 to 15 basis points.
According to JPMorgan, “Despite minimal UST movement on Tuesday and Wednesday, customer sales listings surged, ending the week at +50% compared to the recent average, compared to more than a decade ago. bonds rose approximately +80%,” Birch Creek strategists noted.
With weak secondaries and a large number of new issue calendars forcing underwriters to compete, tentative pricing offers significant concessions that only exacerbate the weakness in secondaries, they said. .
This led to LSEG MMD’s biggest rate cut since April on Wednesday, and Munis “significantly underperformed” relative to interest rates, Birch Creek strategists said.
Clements said the market was able to find some stability over the weekend.
“With a bit of green on the screens on Thursday, the end of the main calendar and absolute and relative yields becoming much more attractive, buyers in Munich jumped in again,” the person said.
New issuances, such as $1.5 billion in future tax-backed subordinated debt from the New York City Interim Fiscal Authority (Aa1/AAA/AAA/), which were “released at strong interest during the break,” were similarly “bid.” Shares rose 12 basis points Thursday afternoon, Birch Creek strategists said.
This strength “carried over” into Friday, with the Muni trading an additional 5-7 basis points in the early morning hours, but with the UST falling that afternoon, the Muni underperformed by only 3-5 basis points. It is said that he stayed at
Birch Creek strategists said this week’s calendar will be “watchable” again.
Pat Ruby, head of municipal strategy at CreditSights, said this week’s deliveries include “two state governors, a prestigious university, a ‘forgotten city’ airport and two interesting insurance deals.”
Most of The Bond Buyer’s 30-day visible supply ($14.49 billion) should be priced this week.
Ruby said there are no big deals on next week’s calendar because of the election, and he doesn’t expect that to change.
Birch Creek strategists said that if the election results “lead to a sharp rise in interest rates, governments will likely follow suit in some capacity, but a better technical environment should drive relative performance.” Ta.
AAA scale
Refinitiv MMD size remained unchanged at 2.83% in 1 year and 2.65% in 2 years. As of 3 p.m., the five-year bond rate was 2.64%, the 10-year bond rate was 2.97%, and the 30-year bond rate was 3.82%.
The ICE AAA yield curve was little changed, at 2.94% (poop) in 2025 and 2.70% (poop) in 2026. The 5-year was 2.66% (+1), the 10-year was 2.97% (poo), and the 30-year was 3.76% (poo) as of 3:30 p.m.
The S&P Global Market Intelligence municipal curve has moved up. The one-year yield was 2.87% (unch) in 2025 and 2.68% (unch) in 2026. The 5-year was 2.66% (-1) and the 10-year was 2.66% (-1). As of 3 p.m., the yield on the 30-year bond was 2.95% (poop) and 3.76% (poop).
Bloomberg BVAL remains unchanged at 2.83% in 2025 and 2.64% in 2026. As of 3:30 p.m., the 5-year was 2.67%, the 10-year was 2.99% and the 30-year was 3.79%.
Government bonds were weak.
The 2-year UST yield was 4.137% (+3), the 3-year yield was 4.085% (+3), the 5-year yield was 4.106% (+4), and the 10-year yield was 4.273% (+3). The closing price was 4.618% (+3) for 20-year bonds and 4.525% (+3) for 30-year bonds.
future primary
Washington (Aaa/AA+/AA+/) on Wednesday issued a $1.55 billion general obligation bond consisting of $886,245,000 in various purpose GO refinancing bonds, series R-25B, series 2025-2039. The price will be set in US dollars. and $664,155,000 in motor fuel taxes and vehicle-related fees. GO Repayment Bonds, Series R-25C, Series 2025-2039, 2042. BofA Securities.
The Pennsylvania Higher Education Facilities Authority (A3/A/A/) on Wednesday plans to price the Thomas Jefferson University fixed-rate income bonds at $1.17 billion, including 655 million tax-exempt Series 2024B-1 bonds. million dollars plus taxes of $285 million. Series 2024B-2 bonds and $168 million of taxable Series 2024C bonds are exempt. JP Morgan.
The Miami-Dade County Educational Facilities Authority (A2/A-//) will set a price on Tuesday for $860 million in bonds issued by the University of Miami, which includes $552 million in revenue and income repayment bonds; Consists of series 2024A, series 2025 to 2048. $308 million Revenue Refinancing Notes, Series 2024B, Series 2030-2045. Barclays.
The New Orleans Aviation Commission (A2//A/) is scheduled to price $597.4 million in general airport revenue bonds on Wednesday. The Notes consist of $47,575,000 of non-AMT Refinancing Notes, Series 2024A, Series 2026-2045. $455,435,000 of AMT Refinancing Notes, Series 2024B, Series 2026-2045. $19,875,000 of non-AMT bonds, series 2024C01, term 2054l; $69,395,000 of AMT bonds, series 2024C-2, series 2029-2045, term 2049, 2051; and $5.12 million taxable, Series 2024C-3, Series 2026-2029. Bohua Securities.
Philadelphia (A1/A+/A+/) plans to price its Series 2024C water and wastewater revenue bonds at $558.37 million. Siebert Williams Shank.
The Virginia Housing Development Authority (Aaa/AAA//) plans to price $455.48 million in Commonwealth Mortgage bonds on Tuesday. The bond consists of $80 million of non-AMT bonds. Series D, series 2026-2036, periods 2039, 2044, 2049, and 2055. $160 million taxable, Series E, series 2026-2034, periods 2039, 2044, 2049, 2055; $215.48 million in non-AMT corporate bonds, Series F, Serial 2055. Wells Fargo.
Atlanta (Aa3/A+//) on Tuesday plans to price its water and wastewater subordinated lien sustainability revenue bonds at $383.51 million. JP Morgan.
The Harris County-Houston Sports Authority (A2/AA//) plans to price $329.68 million in surety-guaranteed income refund bonds on Tuesday. The notes consist of $207,575,000 of senior lien bonds, series 2024A, series 2025 through 2044, and term 2047. $122,105,000 Second Lien Notes, Series 2024B, Series 2025-2044, Term 2046. Wells Fargo.
The Indiana Department of Housing and Community Development (Aaa//AA+/) on Tuesday plans to price single-family mortgage social revenue bonds at $198.62 million, including $97 million in non-AMT Series D-1 bonds. , $3 million in AMT Series D bonds. -Two bonds and $99 million in taxable series D-3 bonds. JP Morgan.
Florida’s Pasco County School District (Aa3//AA/) on Tuesday plans to price its 2025-2039 sales tax revenue bonds at $197,195,000. Bohua Securities.
Build NYC Resource Corporation on Tuesday plans to price its tax-exempt Success Academy Charter School Project Revenue Bonds at $150 million. PNC Capital Markets.
The Nebraska Investment Finance Authority (/AAA//) on Wednesday plans to price $130.51 million in single-family home income bonds, including $96 million in social non-AMT Series G bonds and taxable Series H bonds. It is 35 million dollars. JP Morgan.
BROWNSBURG, Indiana 1999 School Building Corporation (/AA+//) on Tuesday priced its Indiana Aid Intercept Program-insured, Series 2024 A, Serial 2025-2044 ad valorem property tax first lien bonds for $1. It is expected to be set at $20.36 million. Steifel, Nikolaus & Co.
Maine Housing Authority (Aa1/AA+//) on Tuesday (retail Monday) $110 million in mortgage purchase social bonds, 2024 Series F, series 2026-2029, periods 2044, 2049, 2054 The company plans to set prices for the year. Barclays.
The Atlanta Urban Redevelopment Authority (Aa1//AAA/) on Wednesday plans to price $103,735,000 in surface transportation and infrastructure project revenue bonds, Series 2024B, Series 2025-2044. Ramirez.
competitiveness
The State of California (Aa2/AA-/AA/) bid for $471,995,000 in bid Group B miscellaneous GO refinancing bonds at 11:45 a.m. Tuesday and for various taxable purposes at 11 a.m. Tuesday. We plan to sell $324,965,000 of GO redeemable bonds. ;Tuesday 11 a.m. Bid Group A Taxable Mixed Purpose GO Refinancing Bonds for $55,445,000;
The Frisco Community Development Corporation is scheduled to sell $197,265,000 in taxable sales tax revenue bonds at 11:15 a.m. Tuesday.
Pender County, North Carolina (Aa2/AA//) is scheduled to sell $144 million in GO school bonds at 11 a.m. Tuesday.
The Pinellas County School District in Florida plans to sell $100 million worth of tax estimate slips at 11 a.m. Tuesday.
The City and County of San Francisco (Aa2/AA+/AA+/) will sell its Multiple Capital Improvement Projects Certificate of Participation, Series 2024A, for $118,705,000 at 11:30 a.m. Thursday.
The Charleston County School District is scheduled to sell a $115,065,000 GO at 11 a.m. Thursday.
