Jessica Lerner

With the Fourth of July holiday shortening the week, investors will see a paltry $2.861 billion of new issues to kick off the second half of 2022.

Investors pulled more from municipal bond mutual funds, with Refinitiv Lipper reporting $1.3 billion of outflows, down from the $1.6 billion the week prior and bringing the total to $47 billion year-to-date.

For the first half of 2022, total issuance sits at $201.556 billion, down 14.5% from $235.836 billion in 2021. Taxables are down 46.8% to $31.024 billion from $58.338 billion.

The Investment Company Institute reported investors pulled $4.590 billion from muni bond mutual funds in the week ending June 22, down from $6.243 billion of outflows in the previous week.

A new-issue supply-focused buy-side had their sights on the $8 billion-plus flowing into the primary market this week, while municipal traders remained cautious, keeping an eye on bid-wanted lists in the secondary market.

A bearish market sentiment and elevated muni to UST ratios often represent a buy signal. Taxable equivalent yields are compelling for buy-and-hold investors, analysts say.

Municipals head into the final week of the first half of 2022 on more stable footing, but a cautious tone hangs over the market.

Refinitiv Lipper reported smaller outflows at $1.6 billion, down from the $5.6 billion the week prior. It brings the total outflows to $45.7 billion year-to-date.

The Investment Company Institute reported investors pulled $6.243 billion from muni bond mutual funds in the week ending June 15.