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The Chicago Fed National Activity Index for July decreased to negative 0.01 from positive 0.16 in June, while the three-month moving average (CFNAI-MA3) fell to negative 0.05 from positive 0.09 in June, the Federal Reserve Bank of Chicago reported Monday.

The state of Texas is riding into the market this week with the biggest short-term deal of the year.

The development sector grew by 36% and public facilities climbed by 11%, making them the sectors that grew by the largest percentage in the first half of the year. The sectors with the biggest declines were electric power at 55% and utilities at 23%.

The municipal market got off to a fast start in terms of issuance this year, picking up in January right where it left off from 2016’s record-setting totals. However, the pace of issuance has since slowed, leaving 2017 first-half volume lagging last year's levels.

Short-term note issuance rose less than 5% in the first half of 2017 as municipalities relies less on cash flow needs.

Although market conditions and a still relatively low interest rate environment continue to hamper the bond insurance industry, there continue to be encouraging signs including a slight uptick in the insurance penetration rate.

The simultaneous drop in Puerto Rico’s unemployment rate and employment reflects the flight of workers from the island.

Some see the collapse of President Trump’s infrastructure council as good for municipal bonds.

The $560 million deal is expected to sell later this month.

Primary municipal bond market volume is expected to drop to $4 billion in the coming week, as one gigantic note sale is expected to be larger than the entire bond calendar.