Muni Issuance Falls to $8.137 Billion as Holiday and Fed Meeting Curb Supply
Updated
Updated · Bond Buyer · Jun 15
Muni Issuance Falls to $8.137 Billion as Holiday and Fed Meeting Curb Supply
1 articles · Updated · Bond Buyer · Jun 15
Summary
$8.137 billion of municipal issuance is expected this week, down as a holiday-shortened calendar and the FOMC meeting trim supply even as demand stays firm.
J.P. Morgan said munis could extend a Treasury-led rally if current rates hold, helped by just $5.396 billion of negotiated deals and $2.741 billion of competitive sales.
Miami-Dade County leads negotiated issuance with $637.865 million of aviation refunding bonds, while Washington tops the competitive slate with $1.524 billion of general obligation bonds.
$624.6 million of weekly fund inflows slowed from earlier pace, but year-to-date inflows still total $48.2 billion and muni returns of 1.56% continue to outpace Treasuries and corporates.
Barclays remains cautious as late June usually weakens seasonals, valuations look stretched and markets await Kevin Warsh's first Fed press conference for clues on the policy path.