Finance

Municipal yields fell up to three basis points, depending on the scale, but underperform a better UST market.

S&P Global Ratings placed Maryland Heights, Missouri, on credit watch with negative implications because of bonds from a related authority for a hockey rink.

UST rates are driving all things in the muni market, said Jon Mondillo, head of North American Fixed Income at abrdn.

This comes as the firm shores up its presence in Texas.

There will be "choppiness in the municipal bond market through the end of the year," said Anders S. Persson, Nuveen's chief investment officer for Global Fixed Income, and Daniel J. Close, Nuveen's head of municipals.

The Bloomberg Municipal Index and High-Yield Index lost 3.3% and 3.9%, respectively, in September.

Dustin Avey and Jeremy Garber were named co-heads of public finance; Fairman, a 40-year veteran of the firm, will remain in an advisory capacity into 2024.

The last time muni mutual funds saw outflows top $1 billion was the week ending May 31 when they were $1.345 billion.

Bonds tied to Destiny USA in Syracuse were cut deeper into junk by Moody's Investors Service on doubts about its ability to extend an outstanding loan.

"The market has taken to heart the [Federal Open Market Committee] actions from last week," said Jeff Lipton, managing director of credit research at Oppenheimer Inc.

Fitch Ratings affirmed the city's AA-plus GO rating while bumping the outlook on certificates of participation sold for its city courthouse.

Yields have "risen substantially over the last week as the market seeks to find at least a minor level of balance or equilibrium," said Tom Kozlik, managing director and head of public policy and municipal strategy at HilltopSecurities.

Data for the second quarter show the face amount of munis outstanding rose 0.4% quarter-over-quarter, or $15.5 billion, to $4.043 trillion.

The district plans an aggressive capital program in the next few years to meet rising demand and transition away from coal-fired plants.

"People are just kind of sitting on their hands and being careful because MMD is raising yields every day and people don't know which way this is heading," said John Farawell of Roosevelt & Cross.

The rating agency removed the negative outlook it had assigned after the community college district's accreditation was threatened.

The Texas Water Development Board leads the new-issue calendar with $1 billion of revenue bonds.