Municipal Bond Market
Munis are unchanged this morning after trading stronger yesterday. We continue see minimal liquidity in the secondary with very few bidders on items and very little trading. Today’s focus will be on the secondary with the majority of new issue wrapped up for the week. 30-day supply is stronger this morning with $12.9bln on tap compared to $9.5bln yesterday.
Munis reversed two weeks of inflows with $211mln of outflows. Outflows should put a little pressure on next week’s calendar as we continue to see inflow money propping up the primary.
PR benchmarks GOs were unchanged yesterday after rallying throughout the week. 5000m traded @ 79.25 (10.45%) after trading as low $77 last week. We expect GO debt to be extremely sensitive to any news coming out of the island over the next few weeks, specifically any news regarding a new deal.
30-Day visible supply: $ 12.9bln