Finance

A stronger-than-expected nonfarm payroll report reignited fears that the Federal Reserve will hike rates. Munis and USTs had a somewhat muted reaction, according to Hennion & Walsh's James Pruskowski.

"The reason the number [of trade counts] is a record and not just elevated is structural, and it's been building for years," said Josh Rosenblum, head of municipal trading strategies at Brownstone.

KBRA approves of New Jersey's pension progress and budget management.

The market is striking a better tone as investors are less worried about rate hikes, NewSquare Capital portfolio manager Kim Olsan said.

Heavy August issuance created fewer oversubscriptions and more demand for concessions, a signal that issuers, advisors and underwriters need to pay closer attention to structure, timing and clearing levels, according to Market Intelligence analyst Jeff Lipton.

Supply hasn't let up since Tuesday's selloff. Muni yields will likely continue to rise as the new issue market offers investors a "buffet" of options, according to H.J. Sims analyst Tim Iltz.

The incoming Bond Buyer Hall of Famer has paired creative banking with relentless execution and client focus across four decades — from pioneering a new muni sector to transforming Jefferies into a market leader.

The muni selloff is likely to continue if UST yields stay elevated, according to SWBC's Chris Brigati.

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"The muni market selloff is primarily a result of Treasury movement, but the orderliness of it in terms of not getting any more volatility in munis than Treasuries is a direct result of people's ability to withstand those moves," said Jeff Timlin, managing partner and head of municipal bond investing at Sage Advisory.

The incoming Bond Buyer Hall of Famer says titles and board seats are "empty calories" unless they improve the municipal market, a philosophy that has shaped his work in regulation, banking, and mentorship.

This week marks the end of the "summer redemption season," said Pat Luby, head of municipal strategy at CreditSights, and the ensuing reduction in redemptions will lead to an increase in net supply.

This week, issuance is estimated at $12.821 billion, with $9.301 billion of negotiated deals on tap and $3.519 billion of competitives, according to LSEG.

Fed Chair Kevin Warsh took a hawkish tone on inflation in his Jackson Hole speech, sparking a selloff in short-term UST yields.

It's no surprise that munis are in a "holding pattern," Charles Schwab's Cooper Howard said, as investors are eager to hear Fed Chair Kevin Warsh's speech on Friday.

Muni market participants are "asking a lot of questions" ahead of Fed Chair Kevin Warsh's speech at the Jackson Hole retreat, said James Pruskowski, managing director at Hennion & Walsh.

With a general obligation bond deal in the works, Illinois can tout Moody's upgrade to A1 of the state's issuer, GO and Build Illinois sales tax bond ratings.

Despite the mounting uncertainty facing muni and UST markets, muni yields are "generationally attractive," according to Tom Kozlik of HilltopSecurities.

Rating agencies say they don't expect federal plans for the drought-plagued river to spark near-term credit concerns, but they may develop over the longer term.

USTs have been boosted by the U.S. government's announcement of sanctions against Iran. Munis seem to be taking the news well, NewSquare Capital's Kim Olsan said, but the asset class has its own news to focus on.