Wednesday, Apr. 1, 2015

Municipal Bond Market
Munis are slightly stronger this morning after an extremely quiet close to the quarter.  We saw some strength in the primary with the pricing of $225mln Utah GOs (7/2019-2026). Re-offering yields were 1.09% in 7/2019 and 1.97% in 7/2025.  30-day supply dropped to $9.24bln from $11.63bln yesterday.

PR benchmarks GOs were unchanged on the day on light volume after PREPA announced that it had agreed to a 15-day extension with creditors. We expect to see very little flow in PR debt over the next two weeks as we await more clarity on PREPA and the pricing of a new deal. 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: $ 9.24bln

Deals we will be bidding today:
24mln     McMinnville, OR Gen Obs     2016-2030     Aa3/
30mln     Mukileto County School District No. 6, WA Refunding     2015-2019     Aa2/
13mln     Needham, MA     2015-2033
8mln     Orleans County, NY Public Improvement     2016-2035     A1/
3mln     Pleasantville, NY School District     2017-2029     Aa2/

UST 10yr 1.960%