Municipal Bond Market
Munis are slightly stronger this morning after an extremely quiet start to the week. There was very little flow in the secondary. Buyers seemed to be sitting on the sidelines in anticipation of the $8.5bln+ in new issue set to price over the next few days. Today kicks off the weeks larger deals with the pricing of $223mln Utah St GOs. 30 day supply remains stable with $11.63bln expected vs. $11.26bln from yesterday.
PR benchmarks GOs were unchanged on the day on light volume as the market awaited comments from the PREPA extension meeting. PREPA agreed to a 15-day extension with creditors late last night. We expect to see very little impact on PR debt today and expect most buyers to await an announcement after the 15-day extension. Benchmark GOs continue to trade around $82.00 (10.10%) after trading as high as $86.625 (9.56%) in mid-March.
30 Day visible supply: $ 11.63bln
Deals we will be bidding today:
11mln Linden, NJ Gen Improvement 2016-2030 /AA- 1300 R&C
96mln Bellvue, WA 2016-2034 Aa1/AAA 2000 Citi
33mln Des Moines met Water District, IA 2016-2036 Aa3/AA 2000 Baird
25mln Flagler County, FL 2016-2035 /AA- 1000 Citi
29mln Murray State University, KY 2017-2035 Aa3/ 2000 Baird
51mln Johnston County, NC Refunding 2016-2028 Aa2/AA+ 1000 Citi
94mln Orlando Utilities Commission, FL 2028-2035 Aa2/AA 2000 Citi
30mln Utah State Building Auth 2016-2030 Aa1/AA+ 2250 Baird
223mln Utah State G.O.s 2019-2026 Aaa/AAA 2000 Citi
UST 10yr 1.960%
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