George Yacik

The muni market recorded its fourth straight month of positive returns in November and December is likely to keep the streak going with another strong month to round out the year.

Next week's issuance is slated to be "substantial" — an estimated $13.1 billion — although that is expected to be met with "solid" November reinvestment capital, J.P. Morgan strategists said.

If the shutdown lingers, disruption to key economic data releases could increase market uncertainty, said Tom Kozlik of HilltopSecurities.

Thanks to strong technicals and the anticipated interest rate cut by the Federal Reserve at its September meeting, municipal bonds posted positive returns of 0.87% in August, reversing their losses of 0.20% in July, according to Jason Wong, vice president municipals at AmeriVet Securities.

New York issuers lead a $9 billion slate.

"We are entering a period during the summer months in which demand historically outweighs very limited supply, resulting in a supportive performance environment but more limited investment opportunities," said J. Robert Lind of Lind Capital Partners.

As the end of the first half of a so-far tumultuous 2025 approaches, several municipal bond analysts are upbeat about the rest of the year.

The Indiana Financing Authority is the biggest entry on 2025's largest negotiated calendar with $1.5 billion of Indiana University Health system revenue bonds.

A couple of "bond-friendly" economic reports released Thursday could encourage the Federal Reserve to reduce interest rates in the near future, some analysts argued.

Following a volatile April, a few municipal bond analysts are optimistic about the near-term future.

The muni market is coming out of oversold conditions, said David Litvack, a tax-exempt strategist at BofA.

The firmness in the market Monday came from a "settling down" after one of its most volatile weeks since the pandemic, said Cooper Howard of Charles Schwab.

The asset class extended its selloff last week as concerns regarding the tax-exempt status of munis continued to mount, combined with a heavy new-issue calendar and tax season selling by investors, said Jason Wong, vice president of municipals at AmeriVet Securities.

Municipals were narrowly mixed to start the holiday-shortened week, but the lighter supply should buoy the market.

Investors added $1.124 billion to municipal bond mutual funds in the week ending Wednesday, following $741.6 million of inflows the prior week, according to LSEG Lipper data.

January's municipal bond supply "will end up being heavier compared with the normally slow start of the year, but the pipeline should remain quite robust," Barclays said.

Rating agency cited built up reserves as a key to the city's "better financial footing."

A new tax on corporations would create a dedicated revenue stream for commuter rail and bus operator NJ Transit under New Jersey Gov. Phil Murphy's budget plan.

Maura Healey's budget plan for fiscal 2025 features more money for the Commonwealth Transportation Fund, which would increase its bond capacity by $1.1 billion.

The city is looking for "a diverse group of qualified firms with varied strengths and market advantages" to "provide the most cost-effective distribution."