Municipal Bond Market
Munis are stronger this morning after trading weaker throughout the curve yesterday. Secondary flow was extremely light as buyers continue to focus on the primary market. Chicago BOE bonds traded up in the secondary after seeing huge demand during the order period. The 5.25s of 2039 priced at a 5.63ytm and are being offered as high a 5.53ytm this morning. New issue is light today, which could lead to some additional flow in the secondary with the first half of the week being completely dominated by new issuance. 30-day dropped to $8.2bln from about $9.5bln yesterday.
PR benchmark GOs remained unchanged on average volume. GOs continue to trade in the high $70.00s (10.40) to low $80.00s (10.34%) after trading as high as $86.625 (9.56%) in mid-March. Yesterday’s largest trade in the name was 3000m bonds @ $80.25 (10.348%). We continue to see nontraditional muni buyers stepping into PR debt. Yesterday, DoubleLine capital reported a $20mln position in its income solution fund.
30 Day visible supply: $ 8.2bln
Deals we will be bidding:
$43,105 Clover School District No. 2, NC 2017-2030 Aa2/
$30,000 Iowa Brd of Regents (IA St U of Science & Technology) 2016-2035 Aa3/
$26,005 North Dakota Public Fin Auth 2016-2035 /AA
$302,125 North Texas Municipal Water District 2015-2044 Aa2/AAA