Municipal Bond Market
Munis are stronger this morning after a weak day of trading yesterday. We continue to see extremely light volumes on Mondays which was evident yesterday. The focus today will be on the primary with the pricing of $300mln Ohio ST GOs and $150mln Princeton Universities. Funds have seen inflows for the second straight week leaving a decent amount of cash on the sidelines after such a light calendar last week. New Cash should support most of the week’s primary deal with any left over money flowing into the secondary. 30-day supply remains mostly unchanged this morning to with $12.9bln scheduled compared to $13.00bln to start the week.
PR benchmarks GOs continue to firm up after selling off significantly after legislators rejected an overhaul of PRs tax system last week. Bonds traded around $78.50 (10.60%) 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: $12.96bln
Deals we will be bidding today:
150,000 NJ Ed Fac Auth, Princeton U 2017-2045 Aaa/AAA
21,330 Annapolis, MD Series B 2016-2028 Aa2/AA+
1,630 Canby, MN G.O. Taxable 2017-2036 /AA+
64,385 Clemson, SC Athletic Facilities Rev 2016-2045 Aa3/
97,430 Clemson, SC Higher Ed Facilities Rev 2018-2045 Aa2/AA-
13,485 Ellwsorth, ME Series A 2015-2039 Aa3/
30,000 Massachusetts School Building Authority 2016-2045 Aa2/AA+
300,000 Ohio State G.O.s Series B 2016-2035 Aa1/AA+