Wednesday, Apr. 29, 2015

Municipal Bond Market
Munis are unchanged this morning after trading weaker yesterday.  Focus should be back on the secondary today with Tuesday being the largest day on the new issue calendar.   The largest deal of the day was Humble TX, which priced 218mln GOs… 3.50s of 2039 priced @ 3.58%.  We expect to see light volume as the market awaits comments from the two-day FOMC meeting.  30-day supply is mostly unchanged this morning with $8.4bln scheduled over the next month compared to $8.7bln yesterday.

PR benchmarks GOs were unchanged again.  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 5000m bonds @ $80.25 (10.34%).  PR paper has been mostly unchanged over the past week as we continue to await information on the July 1st PREPA payment and the pricing of a new deal. 

30-Day visible supply: $8.429bln

Deals we will be bidding today:
10,265     Daviess County SD, KY     2016-2030
1,080     Floral Park - Bellerose UFSD, NY     2016-2030
35,000     Knoxville, TN Electric System Rev Bonds     2016-2035
20,000     Knoxville, TN Water System rev Bonds     2016-2045
30,000     Knoxville, TN Wastewater System Rev Bonds     2016-2050