Finance

Investors pulled more from municipal bond mutual funds as the Investment Company Institute reported $4.5 billion of outflows in the week ending March 30.

Hawkish Fed comments caused UST yields to rise by as much as 17 basis points, just as munis had caught a bid. The new-issue market fared well in digesting large deals amid the volatility.

Municipals have taken a hit in the first months of 2022, but higher yield levels and cheaper ratios have offered possibilities for both retail and institutional buyers, analysts say.

Montebello Unified priced a $12.2 million tax-exempt refunding, but didn't execute a planned taxable tranche.

Firms remain uncertain about how state laws that apply litmus tests for banks and others seeking contracts with governmental entities impact them.

Next week's supply is slated to be $10.166 billion, $8.982 billion of negotiated deals and $1.184 billion of competitive loans. A larger primary calendar is led by two billion-dollar airport deals.

Investors pulled more from municipal bond mutual funds in the latest week, with Refinitiv Lipper reporting $2.038 billion of outflows, up from $1.503 billion of outflows in the previous week.

Underwriters sidelined by the state's new litmus test on firearms policies have bought many past Texas TRANs, but the state won't need to issue any this year.

The city is pricing $168 million of subordinate wastewater revenue bonds on Tuesday. The system's main plant spilled raw sewage into Santa Monica Bay last year.

The Investment Company Institute on Wednesday reported $2.728 billion of outflows in the week ending March 23, down from $3.615 billion of outflows in the previous week.

Moody’s said MEAG's upgrade reflects the upgrade of Florida’s JEA Electric Enterprise ratings on Monday. JEA is to be a major customer of MEAG's nuclear units.

Without a reversal in UST or municipal bond mutual fund outflows, munis will continue to be pressured.

Moody's said its rating upgrades reflect the Jacksonville, Florida, utility's sound financial performance and governance changes.

With massive secondary selling pressure and a larger calendar, credit spreads are likely to continue to widen.

Dallas Fort Worth International Airport will bring its first new money issue since 2017 to the municipal bond market next week, buoyed by an rating upgrade.

Next week's potential volume is slated to be more than $8 billion, led by $1.25 billion of taxable and tax-exempt future tax-secured subordinate bonds from the New York City Transitional Finance Authority.

Outflows continued, with Refinitiv Lipper reporting investors shed $1.503 billion from municipal bond mutual funds in the week, following outflows of $2.136 billion in the previous week. High-yield saw small inflows.

More outflows from municipal bond mutual funds were reported as bid lists surpass $1 billion 22 times in 2022.

The California Health Facilities Finance Authority will price the final authorization of $1.05 billion from the $2 billion program on Tuesday.

The triple-A 10-year yield is above 2% on all scales, the highest since March 2020.