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Municipals had been regular Friday as U.S. Treasuries had been little modified and equities had been blended.
The 2-year muni-UST ratio Friday was at 69%, the five-year at 66%, the 10-year at 67% and the 30-year at 88%, in keeping with Municipal Market Knowledge’s 3 p.m. EDT learn. ICE Knowledge Companies had the two-year at 69%, the five-year at 65%, the 10-year at 67% and the 30-year at 88% at a 4 p.m. learn.
The tone of the muni market continues to be robust, “though buyers took a small step again when UST yields moved greater mid-week, however ratios have remained largely unchanged,” stated Barclays strategists led by Mikhail Foux.
The muni market might even see extra volatility resulting from “uncertainties associated to the way forward for tariffs and stronger inflation prints,” they stated.
Furthermore, muni valuations turned much less engaging after the rally in September by October, Barclays strategists stated.
“Nonetheless, provide doesn’t appear overwhelming this month, whereas fund flows ought to stay strong — thus we stay constructive in the marketplace for the final two months of the 12 months,” they stated.
“Given a spread certain to decrease UST market backdrop, subsequent week’s manageable provide must be effectively digested as buyers are fairly well-funded,” stated J.P. Morgan strategists led by Peter DeGroot.
After subsequent week, major market quantity “gaps greater” previous to the Thanksgiving week pause, they stated.
“Spreads will probably be extra depending on charges and flows in these elevated provide weeks, given extra balanced relative worth within the longer portion of the curve,” J.P. Morgan strategists stated.
The one- to six-year yield curve stays inverted, after stress from cash markets contributed to the front-end’s underperformance. Nonetheless, “the stress appears to be abating, with the SIFMA index adjusted 54bp decrease this week, and VRDN seller inventories dropping from $9 billion to a way more manageable $5 billion,” Barclays strategists stated.
Subsequently, the front-end might enhance considerably within the coming weeks, and the 3s5s index curve ought to re-steepen, they stated.
Within the high-yield market, the non-rated bucket — which incorporates among the foremost HY Puerto Rico and MSA Tobacco benchmarks — continues to supply the most effective worth, whereas double-Bs and single-Bs stay wealthy by comparability, Barclays strategists stated.
“We totally count on the HY index gaining some floor on the [investment-grade] index within the final two months of the 12 months; for the time being, it’s on the widest stage versus IG previously 18 months,” they stated.
New-issue calendar
The brand new-issue calendar is at $8.616 billion, with $8.122 billion negotiated offers on faucet and $496.2 million of competitives.
Chicago leads the negotiated slate with $1.566 billion of common airport senior lien income bonds on behalf of O’Hare Worldwide Airport, adopted by three different offers simply shy of $1 billion.
The aggressive calendar is led by Dallas is about to promote $230.875 million of GOs.
AAA scales
MMD’s scale was unchanged: 2.54% in 2026 and a pair of.46% in 2027. The five-year was 2.41%, the 10-year was 2.75% and the 30-year was 4.14% at 3 p.m.
The ICE AAA yield curve was bumped as much as one foundation level: 2.55% (unch) in 2026 and a pair of.47% (-1) in 2027. The five-year was at 2.42% (-1), the 10-year was at 2.75% (-1) and the 30-year was at 4.11% (unch) at 4 p.m.
The S&P World Market Intelligence municipal curve was unchanged: The one-year was at 2.54% in 2025 and a pair of.44% in 2026. The five-year was at 2.39%, the 10-year was at 2.75% and the 30-year yield was at 4.12% at 3 p.m.
Bloomberg BVAL was unchanged: 2.52% in 2025 and a pair of.47% in 2026. The five-year at 2.38%, the 10-year at 2.71% and the 30-year at 4.05% at 4 p.m.
Treasuries had been little modified.
The 2-year UST was yielding 3.554% (flat), the three-year was at 3.563% (flat), the five-year at 3.676% (-1), the 10-year at 4.088% (flat), the 20-year at 4.668% (+2) and the 30-year at 4.696% (+2) close to the shut.
Major to come back
Chicago (/A+/A+/A+/) is about to cost Thursday for O’Hare Worldwide Airport $1.566 billion of common airport senior lien income bonds, consisting of $1.064 billion of AMT Sequence E bonds, $479.955 million of non-AMT Sequence F bonds, and $22.1 million of AMT Sequence G refunding bonds. Jefferies.
The Black Belt Vitality Fuel District (A2///) is about to cost Wednesday $995 million of fuel mission income bonds, 2025 Sequence G. Goldman Sachs.
Miami-Dade County, Florida, (Aa3/AA/AA-/AA/) is about to cost Thursday $975.915 million of water and sewer system income bonds, consisting of $570.55 million of Sequence A bonds and $405.365 million of Sequence B refunding bonds. Wells Fargo.
The Los Angeles Municipal Enchancment Corp. (/A+/AA//) is about to cost Thursday for the Los Angeles Conference Heart $967.705 million of lease income bonds, consisting of $850.9 million of tax-exempt Sequence 2025-A and $116.805 million of taxable Sequence 2025-B bonds. Morgan Stanley.
The Washington State Housing Finance Fee (//BB//) is about to cost Wednesday $597.33 million of nonprofit housing income and refunding bonds (Horizon Home Undertaking), consisting of $404.78 million of Sequence A, $36.175 million of Sequence B1, $36.15 million of Sequence B2 and $130.255 million of Sequence B3. Ziegler.
The Nationwide Finance Authority is about to cost Thursday $359.841 million of municipal certificates, consisting of $307.215 million of Sequence 2025-3, Class A-1; $45.43 million of Sequence 2025-3, Class A-2; and $7.196 million of Sequence 2025-3, Class B. Jefferies.
The College of Delaware is about to cost Thursday $310.375 million of tax-exempt bonds, Sequence 2025A. Barclays.
The Central Florida Expressway Authority (Aa3/AA-//) is about to cost Thursday $277.21 million of senior lien income bonds, Sequence 2025A. BofA Securities.
Franklin County, Ohio, (Aa2//AA/) is about to cost Wednesday $233.46 million of hospital refunding and enchancment income bonds (Nationwide Youngsters’s Hospital), Sequence 2025A. J.P. Morgan.
The Monroe County Industrial Improvement Corp. (Aa3/AA-//) is about to cost Thursday $223.215 million of income bonds (College of Rochester Undertaking), consisting of $122.445 million of non-AMT Sequence 2025A bonds and $100.77 million of taxable Sequence 2025B bonds. BofA Securities.
The Santa Monica-Malibu Unified Faculty District, California, (Aa1/AA+//) is about to cost Thursday $130 million of GOs, consisting of $127.675 million of tax-exempts and $2.325 million of taxables. Baird.
The Ohio Housing Finance Company (Aa1///) is about to cost Wednesday $130 million of non-AMT social residential mortgage income bonds (Mortgage-Backed Securities Program), 2025 Sequence D. Raymond James.
The Ohio County Fee, West Virginia (/BBB//) is about to cost Wednesday $107.325 million of particular district excise tax refunding and enchancment income bonds (Fort Henry Financial Alternative Improvement District — The Highlands Undertaking), Sequence 2025 A. Piper Sandler.
Aggressive
Dallas is about to promote $230.875 million of GOs, Sequence 2025, at 11:15 a.m. Jap Wednesday.
The Virginia Housing Improvement Authority is about to promote $102.78 million of non-AMT rental housing bonds, 2025 Sequence F, 11 a.m. Thursday.
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