Thursday, May 7, 2015

Municipal Bond Market
Munis are stronger this morning after closing weaker yet again yesterday.  We continue to see minimal liquidity in the secondary with very few bidders on items and very little trading.  We could see decent flow in the secondary today with the market taking advantage of stronger Treasuries and using this as an opportunity to get out of positions that have a sold off over the past week.   The primary is light today with multiple deals under $50mln but nothing notable.  30-day supply is weaker this morning with $9.68 on tap compared to $11.5bln yesterday.

PR benchmarks GOs continue to firm up after selling off significantly last week.  Bonds traded slightly higher yet again on extremely light volume. 600m traded @ 79.50 (10.45%).  We expect GO debt to be extremely sensitive to any news relating a new deal over the next few weeks.

30-Day visible supply: $9.68bln

Deals we will be bidding today:
30,673     Burlington County, NJ     2016-2033     Aa2/AA
40,000     Davis County School District, UT     2016-2035     Aaa/
36,400     University o9f South Carolina Series B     2017-2026     Aaa/AA+
61,640     University of South Carolina Series A     2016-2035     Aaa/AA+
7,435     Whitman-Hanson Regional School District, MA     2016-2027