Thursday, Apr. 2, 2015

Municipal Bond Market
Munis are unchanged this morning after an extremely quiet trading day yesterday.  Secondary flow remains nonexistent with the majority of buyers putting cash to work in the primary market.   30-day supply rebounded from $9.24bln t0 $11.65bln.  We continue to see money sitting on the sidelines as buyers try to assess how much cash they will need to raise for tax season.

PR benchmarks GOs were unchanged on the day on light volume. PR Governor Alejandro Padilla approved a law late yesterday that will require service providers to accept two different types of payment. The law is an effort by the common wealth to increase the capture rate on tax revenues which currently sits @ 56%.  PR paper was unchanged this morning.  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: $ 11.65bln

Deals we will be bidding today:
8mln     Bullitt County, SD     2015-2028     Aa3/
6mln     College Community SD, IA     2016-2020     Aa2/
3mln     Grafton, MA G.O.s     2015-2044     /AA+
22mln     Norwood, MA     2015-2024     /AA+
12mln     Warren County SD, KY     2015-2030     Aa3/