Municipal Bond Market
Munis are weaker again this morning as the market continues to chase Treasuries. We continue to see extremely light volumes in the secondary with few bidders and many items not trading. The focus today will be on the primary with the pricing of $334mln LA GOs. This should be one of the more interesting deals of the week as the state has been in the news recently over a variety of budget issues. We expect buyers to look for some sort of concession to get the deal priced. 30-day supply is slightly weaker this morning with $11.26bln on compared to $12.9bln yesterday.
PR benchmarks GOs continue to firm up after selling off significantly due to legislators rejecting an overhaul of PRs tax system last week. Bonds traded slightly higher yet again with 5mm trading as high as $79 (10.52%) versus trading as low $77 (10.825%) on Thursday of last week. We expect GO debt to be extremely sensitive to any news relating a new deal over the next few weeks.
30-Day visible supply: $11.26bln
Deals we will be bidding today:
13,720 Berlin, CT G.O.s 2016-2034 /AA+
17,950 Bethlehem, NY Central School District 2015-2034 /AA
329,565 Los Angeles Union School District, CA 2015-2025 Aa2/AA-
334,990 Louisiana State G.O.s 2016-2035 Aa2/AA
82,840 Marin County, CA G.O.s 2015-2045 Aa2/AA+
166,335 Seattle, WA Series A 2015-2035 Aa1/AAA
156,875 Seattle, WA Series B 2016-2044 Aa1/AAA
17,120 Sevierville, TN G.O. Refunding 2016-2035 Aa3/