Tuesday, Mar. 31, 2015

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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