Monday, Jan. 25, 2016

Municipal Bond Market
Munis are stronger this morning after a weak performance on Friday.  Munis continue to drift lower with very little secondary flow.  The market will remain heavily focused on the primary this week $5.6bn in new issuance, highlighted by a $875mln deal from Chicago BOE.  30-day supply is unchanged this morning with $8.18bn on tap over the next 30 days versus $8bn on Friday.
In PR news, the restructuring deal between PREPA and creditors fell apart late on Friday night.  They will remain in talks and an extension of the forbearance will keep negotiations out of court until February 12th.   We have not seen any trades in PREPA paper this morning, but it should open lower once trading begins.   Benchmark 8s traded @ $70.25 (11.97%) on Friday after trading in the below $70 for most of last week. 

30-Day visible supply: $8.17bn


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