Posts Tagged ‘Primary bond market’
Munis little changed to start the week
This week’s $9.4 billion calendar “should easily be absorbed as it is set to be the last full primary calendar of the year, given the Fed meeting the following week and then Christmas and New Year’s holidays,” Birch Creek Capital strategists said in a weekly report.
Read MoreMunis open December firmer ahead of $9B-plus deal slate
Pennsylvania leads the new-issue calendar with $2.1 billion of GOs in four series via the competitive market while the New York City TFA will bring another $1.4 billion of exempts and taxables.
Read MoreMunis close out ‘impressive’ month, poised to return over 6%
Triple-A yields have fallen up to 95 basis points on the month, supply is up 7.8% year-over-year for November and the month is posting positive returns, which has, in turn, led to well over 3.50% returns year-to-date.
Read MoreMunis rally hard in constructive secondary trading; issuers benefit in primary
The continued drop in yields has been “buoyed by a broad rate rally and intra-market fundamentals that simply have created more buyers than sellers,” noted Kim Olsan, senior vice president of municipal bond trading at FHN Financial.
Read MoreMunis improve ahead of holiday; issuance grows to $7B
“The market has had a solid tone to it recently even with the strong rally seen this month,” Roberto Roffo, managing director and portfolio manager at SWBC Investment Management, said of the Nov. 10 rally where municipal yields in 10 years fell by as much as 40 basis points.
Read MoreAnother strong session for munis; FOMC minutes signal caution
The large drop in yields since the end of October can be reflected in sentiment that investors expect a potentially dovish Fed next year, and that a soft landing narrative gives them “permission to finally purchase the bonds they’ve been admiring,” said MMA’s Matt Fabian.
Read MoreA bullish view on munis sets in
BofA Global Research strategists said they believe peak muni yields in this Fed tightening cycle were attained in October 2023 and “the bull market for munis is underway.”
Read MoreMunis see good demand as market tone improves
“Demand is firming up. Interest rates have moved off the recent highs. Intermediate muni yields are about 50 basis points off from those highs,” said Stephen Shutz, head of tax-exempt fixed income and a portfolio manager at Brown Advisory.
Read MoreMunis take a breather after rally, while UST lose ground
“Everyone is reevaluating and taking a breather after the numbers [on Tuesday],” a New York trader said.
Read MoreWeaker inflation report sparks muni, UST rally
Munis yields fell nine to 12 basis points, depending on the curve, but underperformed larger gains along the UST curve. Large new-issues began pricing.
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