Monday, Mar. 30, 2015

Municipal Bond Market
Munis are slightly stronger this morning after a quiet trading day Friday.  Attention will be on the primary this week with $8.5 billion in deals on tap.  The majority of this week’s new issue will price mid-week due to the half day Friday.  New issuance is on pace for its 12th straight week of $8 billion or more in issuance.  We are currently up about 56% year over year in new issue volume.  30-day supply remains stable with $11.29 billion expected vs. $11.9 billion from Friday.

Muni funds saw inflows of $541 million, the largest amount of new cash since Feb 4th.  We continue to see new cash put to work in the primary market and should see new money help support the $9.5 billion in supply this week. 

PR benchmarks GOs were unchanged on the day on light volume to close out the week. Bonds continue to trade around $82.00 (10.10%) after trading as high as $86.625 (9.56%) in mid-March.  In PR news, PREPA is expected to make an announcement today after the common wealth spent the weekend negotiating an extension with creditors.

30 Day visible supply: $ 11.29 billion

Deals we will be bidding:
29mln    Murray State University, KY    2017-2035    Aa3/
51mln    Johnston County, NC Refunding     2016-2028    Aa2/AA+
94mln    Orlando Utilities Commission, FL    2028-2035    Aa2/AA
30mln    Utah State Building Auth    2016-2030    Aa1/AA+
223mln    Utah State G.O.s    2019-2026    Aaa/AAA
$450mln    New York Municipal Water Authority    Aa2/AA+/AA+

UST 10yr 1.948%


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