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Municipals had been regular Tuesday as short-term Treasury yields fell and equities ended down.
The 2-year muni-UST ratio Tuesday was at 69%, the five-year at 65%, the 10-year at 67% and the 30-year at 87%, based on Municipal Market Information’s 3 p.m. EDT learn. ICE Information Companies had the two-year at 68%, the five-year at 65%, the 10-year at 67% and the 30-year at 87% at a 4 p.m. learn.
The muni market has “demonstrated extra conviction with regular demand and interesting relative yields weighing on the long-end whereas shifting dynamics on the short-end have led to municipals selling-off,” stated Tim Iltz, fastened revenue credit score and market analyst at HJ Sims.
“Consequently, now we have seen the municipal yield curve flatten, leading to declining slopes and fewer incentive to increase period,” he stated.
“Demand stays stable; reinvestment is up and final week noticed one other larger than $3 billion in complete fund inflows, half through 2a7 funds,” stated Matt Fabian, president of Municipal Market Analytics.
After two weeks of sizable inflows, muni cash market funds have hit $142 billion, their highest asset degree since Jan. 19, Fabian stated.
“This appears an inexpensive selection currently: not solely due to the potential for tumult in USTs through repo pressures, extra front-end provide, knowledge releases, and (the Supreme Court docket)’s coming opinion on tariffs,” he stated.
“But in addition noting municipal benchmarks’ truculent lag of latest UST worth weak point, intermediate and lengthy spots stay effectively overbought through MMA valuation metrics as effectively,” Fabian stated.
Common trades “skewed strongly” to retail exercise sizes final week, “which is able to at the very least partially mirror the vacation schedule, however the relative lack of huge block buying and selling whereas yields diverge from USTs is a priority nonetheless,” he stated, noting this factors to the elevated chance of a correction within the near-term.
Issuance rebounds this week, unsurprisingly, as issuers purpose to make the most of the final full buying and selling week of November, stated Chris Brigati, CIO and managing director of SWBC, and Ryan Riffe, SVP of capital markets on the agency.
On faucet for the week are giant hospital offers, together with Ascension.
These offers “can be bellwethers: the hospital sector’s prospects had been harm by no (American Care Act) tax credit score extensions,” Fabian stated.
“Nonetheless, any correction is apt to be modest as robust fundamentals — low defaults, state score enhancements, rising demand through SMAs and ETFs — are unlikely to alter a lot over the following 12 months,” he stated.
Within the main market, Morgan Stanley priced for Ascension Well being Alliance (Aa3/AA/AA/) $1.755 billion of income bonds throughout three issuers. The agency priced for the Indiana Finance Authority $702.765 million of fixed-mode bonds, Collection 2025A-1, with 5s of 11/2027 at 2.83%, 5s of 2030 at 2.88%, 5s of 2035 at 3.21%, 5s of 2040 at 3.81% and 5s of 2043 at 4.14%, callable 11/15/2035.
Morgan Stanley priced for the Rutherford County Well being and Academic Amenities Board, Tennessee, $274.1 million of long-term mode bonds, Collection 2025B-1, 5s of 11/2048 with a young date of 11/15/2030 at 3.10%, callable 11/15/2029.
The financial institution additionally priced for the Tarrant County Cultural Schooling Amenities Finance Corp. $392.74 million of long-term mode bonds, Collection 2025C-1, with 5s of 11/2051 with a young date of 11/15/2032 at 3.26%, callable 11/5/2031, and $385.875 million of long-term mode bonds, Collection 2025C-2, with 5s of 11/2051 with a young date of 11/15/2035 at 3.47%, callable 11/5/2034.
Morgan Stanley priced for the Southeast Power Authority (A1///) $600.875 million of power provide income bonds, Collection 2025H, with 5s of 5/2027 at 3.43%, 5s of 5/2030 at 3.55%, 5s of 11/2030 at 3.56%, 5s of 5/2035 at 4.09% and 5s of 11/2035 at 4.15%, callable 8/1/2035.
Jefferies priced for the Ohio Water Improvement Authority (Aaa/AAA//) $500 million of water air pollution management mortgage fund income bonds, with 5s of 6/2030 at 2.50%, 5s of 12/2030 at 2.51%, 5s of 6/2035 at 2.82% and 5s of 12/2035 at 2.90%, callable 9/1/2035.
Wells Fargo priced for the Central Texas Regional Mobility Authority (A2/A+//) $203.61 million of senior lien income refunding bonds. The primary tranche, $105.805 million of Collection 2025A, noticed 5s of 1/2027 at 2.73%, 5s of 2030 at 2.74%, 5s of 2035 at 2.97%, 5s of 2040 at 3.67% and 5s of 2042 at 3.93%, callable 1/1/2036.
The second tranche, $97.805 million of Collection 2025B, noticed 5s of 1/2027 at 2.82%, 5s of 2030 at 2.82%, 5s of 2035 at 3.09%, 5s of 2040 at 3.73% and 5s of 2042 at 3.99%, callable 1/1/2036.
BofA Securities priced for the Phoenix Civic Enchancment Corp. (/AAA/AA+/) $179.2 million of transportation excise tax income bonds, with 5s of seven/2026 at 2.59%, 5s of 2030 at 2.53%, 5s of 2035 at 2.86% and 5s of 2037 at 3.09%, callable 7/1/2035.
Piper Sandler priced for the Colorado (Aa2/AA-//) $113.54 million of tax-exempt constructing glorious colleges at present certificates of participation, Collection 2025T, with 5s of three/2026 at 2.73%, 5s of 2030 at 2.60%, 5s of 2035 at 2.91%, 5s of 2040 at 3.55%, 5s of 2045 at 4.12% and 5s of 2046 at 4.19%, callable 3/15/2035.
Loop Capital Markets priced for the Chicago Park District (/AA-/AA/AA/) $111.945 million of GO restricted tax bonds. The primary tranche, $55 million of park bonds, Collection 2025A, noticed 5s of 1/2037 at 3.45%, 5s of 2040 at 3.83%, 5s of 2045 at 4.43% and 5s of 2049 at 4.60%, callable 1/1/2035.
The second tranche, $56.945 million of refunding bonds, Collection 2025B, noticed 5s of 1/2027 at 2.83%, 5s of 2030 at 2.80%, 5s of 2035 at 3.13% and 5s of 2039 at 3.72%, callable 1/1/2035.
Within the aggressive market, the Missouri Highways and Transportation Fee (Aa1/AA+/AA+/) bought $481.78 million of state appropriations mega tasks state street bonds to Wells Fargo, with 5s of 5/2027 at 2.53%, 5s of 2030 at 2.50%, and 5s of 2031 at 2.53%, noncall.
The Columbia County College District, Georgia, (Aa1/AA+//) bought $180 million of GOs to BofA Securities, with 5s of 10/2027 at 2.50%, 5s of 2030 at 2.50%, 5s of 2037 at 3.05%, 5s of 2040 at 3.40% and 4.125s of 2045 at par, callable 10/1/2035.
Illinois (/A/A+/AA+/) bought $150 million of Construct Illinois bonds (gross sales tax income bonds), Junior Obligation Collection B of December 2025, to RBC Capital Markets with 5s of 6/2036 at 3.30% and 5s of 2040 at 3.83%, callable 6/15/2035.
Pricing knowledge for Illinois’ $300 million of Construct Illinois bonds (gross sales tax income bonds), Junior Obligation Collection A of December 2025, and $150 million of Construct Illinois bonds (gross sales tax income bonds), Junior Obligation Collection C of December 2025, had been unavailable as of three:30 p.m.
CUSIP requests fall
In October, the mixture complete of identifier requests for brand spanking new municipal securities — together with municipal bonds, long-term and short-term notes, and business paper — fell 20.6% versus August totals.
On a year-over-year foundation, total municipal volumes had been up 17.3% by means of the tip of September.
Texas led state-level municipal request quantity with a complete of 165 new CUSIP requests in September, adopted by New York (114) and California (68).
For the precise class of municipal bonds, there was a drop of 18.2% month-over-month, however these requests are nonetheless up 17.6% year-over-year.
AAA scales
MMD’s scale was unchanged: 2.52% in 2026 and a couple 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 little modified: 2.54% (+1) in 2026 and a couple of.46% (unch) in 2027. The five-year was at 2.41% (+1), the 10-year was at 2.76% (unch) 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 2.52% in 2025 and a couple of.46% in 2026. The five-year was at 2.41%, the 10-year was at 2.75% and the 30-year yield was at 4.12% at 3 p.m.
Bloomberg BVAL was unchanged: 2.51% in 2025 and a couple of.46% in 2026. The five-year at 2.37%, the 10-year at 2.70% and the 30-year at 4.04% at 4 p.m.
Treasuries had been firmer 10 years and in.
The 2-year UST was yielding 3.578% (-3), the three-year was at 3.576% (-4), the five-year at 3.693% (-4), the 10-year at 4.122% (-2), the 20-year at 4.711% (flat) and the 30-year at 4.744% (+1) close to the shut.
Major to return
The New York Metropolis Municipal Water Finance Authority (Aa1/AA+/AA+/) is ready to cost $1.032 billion of water and sewer system second basic decision refunding income bonds, Fiscal 2026 Collection AA, consisting of $600 million of Collection AA-1 and $431.57 million of Collection AA-2. Barclays.
The Gross sales Tax Securitization Corp. is ready to cost Wednesday $454.42 million of gross sales tax securitization bonds, consisting of $172.37 million of Collection 2025A refunding bonds (/A+/AAA/AAA/), $206.485 of Collection 2025A second lien refunding bonds (/A+/AA-/AA+/) and $57.11 million of Collection 2025B taxable refunding bonds (/A+/AAA/AAA/). Goldman Sachs.
The Los Angeles Neighborhood School District (Aaa/AA+//) is ready to cost Thursday $300 million of 2016 Election GO refunding bonds, Collection F. BofA Securities.
The Medical College Hospital Authority (Aa2/AA+//) is ready to cost Thursday $260.395 million of FHA-insured hospital mortgage income bonds (Indian Land Undertaking). BofA Securities.
Hamilton County, Ohio, is ready to cost Thursday $207 million of gross sales tax bond anticipation notes. Subordinate Collection 2025 (Paycor Stadium Enchancment Undertaking). Stifel, Nicolaus & Co.
The Massachusetts Improvement Finance Company (//BBB-/) is ready to cost Thursday $181.57 million of Tufts Medication challenge income bonds, consisting of $30.05 million of Collection F bonds and $151.52 million of Collection G taxable bonds. BofA Securities.
The College of Pittsburgh Commonwealth System of Increased Schooling (Aa1/AA+//) is ready to cost $175.375 million of Pitt asset notes. Barclays.
The Grand Rapids Financial Improvement Corp. is ready to cost Thursday $174.83 million of restricted obligation income bonds (Beacon Hill at Eastgate Undertaking), consisting of $107.83 million of Collection A, $12.25 million of Collection B-1, $15.75 million of Collection B-2 and $39 million of Collection B-3. Ziegler.
Montgomery County, Texas, (Aaa/AA+//) is ready to cost Wednesday $154.585 million of restricted tax refunding bonds, Collection 2025A. RBC Capital Markets.
The Genesee County Funding Corp. (/BBB+//) is ready to cost Wednesday $150 million of income bonds (Rochester Regional Well being Power Initiatives), consisting of $142.195 million of Collection 2025A bonds and $7.805 million Collection 2025B taxable bonds. BofA Securities.
The Helena Excessive College District, Montana, (A1/AA//) is ready to cost Thursday $130 million of GO college constructing bonds. D.A. Davidson.
The Public Finance Authority is ready to cost Thursday $116.915 million of tax-exempt scholar housing income bonds (PRG — Oxford Properties LLC), Collection 2025A. Raymond James.
The Golden State Join Authority is ready to cost Thursday $106 million of telecommunications income bonds (Broadband Undertaking). KeyBanc Capital Markets.
Aggressive
Fulton County, Georgia, (Aa2/AA/AA/) is ready to promote $195.675 million of water and sewerage income refunding bonds at 10 a.m. Wednesday.
The Davis College District Board of Schooling, Utah, (Aaa///) is ready to promote $100 million of GOs, Collection 2025B, at 11:30 a.m. Thursday.
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