Hillary Flynn

Municipal bond traders focused their attention on the week's hefty new issue calendar, which kicked off on Tuesday with the sale of several big-ticket items.

The municipal bond market sell-off continues on Tuesday, which is good news for buyers but possibly a negative for issuers, according to market participants.

Investors predict that both the $402.3 million Dallas Area Rapid Transit and the $357.5 million Houston Independent School District deals will go well, but that investors might be more interested in the transit bonds.

The pick-up in volume will not have a large impact on trading this week, investors said.

Trading in the municipal market remained high this week even though it was shortened by the Veteran's Day holiday.

Municipal bonds outperformed Treasuries on Friday.

Inflows for all municipal bond funds rose by 661% this week.

The weekly average yield to maturity of the Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, rose one basis point the week ending Nov. 13th to 4.39%.

Investors will grab the longest maturity in the $394.4 million New York City Water Finance Authority water and sewer system second general resolution revenue bonds now that the yield on those bonds has been raised, traders predict.

The market is back in full swing on Thursday with the largest deals scheduled in the primary this week expected to price.

Hawaii's $1 billion general obligation sale, the biggest deal of the week, met with high demand in retail pricing Wednesday, even though traders said some of the bonds were unusually pricey.

There will be retail appetite for the $379.6 million New York City Municipal Water Finance Authority water and sewer system resolution revenue bonds during their retail order period on Wednesday even though retail brushed off the New York City Transition Finance Authority bonds last week, traders said.

After a day off from trading on Tuesday because of Veterans Day, the market is back in full swing on Wednesday morning, strengthening soon after it opened, and the largest deal of the week is scheduled for retail orders.

The bond market is closed on Tuesday, but traders have told The Bond Buyer they do not see this holiday impacting trading levels for the rest of the week.

Academy Securities, the broker-dealer and certified Disabled Veteran Business Enterprise, has completed a $2 million Series A financing and expanded its board of directors.

The taxable portion of the $1 billion Hawaii general obligation deal will generate more interest than the tax-exempt part, traders said.

This is the time to invest in high-grade bonds in the secondary, but market participants have to act soon, traders said.

The midterm elections dominated traders' attention this week as Republican’s seized control of the U.S. Senate, fanning concern that the municipal tax exemption may be changed. One of the larger deals planned for next week was placed on day-to-day status.

The employment situation report brought the municipal market's sell-off to a halt, according to traders.

Municipal bond fund inflows rose after declining for three straight weeks.