Jessica Lerner

There has been some "capitulation" in munis lately. The asset class was outperforming USTs until very recently, said Chris Brigati, managing director and CIO at SWBC.

Many factors impact the performance of munis, and, this year, everything seems to be working for the positive.

Muni yields were cut up to five basis points Thursday, depending on the scale, after yields rose up to two basis points the day prior.

The initial reaction following the CPI report didn't "move the needle" in the bond market, as the 10-year UST yield was just over 4.5%, said Jay Woods, chief market strategist at Freedom Capital Markets.

Volume was robust last week, with a nearly $20 billion new-issue calendar, and while supply dips to $13 billion this week, it will end up higher thanks to four sizable prepay energy deals that priced on Monday and Tuesday.

Four deals were on the day-to-day calendar, "playing it close to the vest, and all of a sudden, boom, they all get done," said Pat Luby, head of municipal strategy at CreditSights.

Issuance continues to drive performance in the muni market. Despite Friday's run-up in USTs, muni yields adjusted "less dramatically," said Ajay Thomas, head of public finance at FHN Financial.

The $1.2 billion deal, issued by the California Community Choice Financing Authority and underwritten by Goldman Sachs, saw Alphabet as its funding recipient.

While muni primary supply falls this week, it is still robust. Issuance is an estimated $11.541 billion this week, with $8.501 billion of negotiated deals on tap, according to LSEG.

The Nassau County Tobacco Settlement Corp's ability to continue as a going concern depends on restructuring its tobacco debt, the county's audit said.

"A lot of retail investors are still very distracted by the stock market," said Pat Luby, head of municipal strategy at CreditSights.

Investors most recently added $2.33 billion to mutual funds for the week ending May 27, bringing positive flows to date to almost $40 billion, according to LSEG Lipper.

The quartet of accelerated deals is among at least 25 additional unique credits above $100 billion coming to market, a major contributor to the surging supply of $18 billion to $20 billion this week.

Barbar starts as chief commercial officer in mid-July and will be based in Delray Beach, Florida.

Considering the "huge calendar this week," NewSquare Capital's Kim Olsan said, "if we can hold steady, that's probably a good result."

Primary market muni supply year-to-date is at $235.028 billion, up 4.3% year-over-year, according to LSEG.

This week will see continued stability, given the recent bumps on deals in the primary market last week and the lack of negative headlines about the war with Iran, said Elaine Brennan, executive director of the public finance department at Roosevelt & Cross.

Markets grew stronger upon news of the extended ceasfire in Iran, but the reaction was less pronounced than Tuesday's rally.

June redemptions are $44.4 billion. July and August will see $37.7 billion and $38.4 billion returned, respectively, said Pat Luby, head of municipal strategy at CreditSights.

Munis and USTs both received a boost from news of a possible peace deal with Iran.