Finance

Until supply comes, market participants appear to be content to sit back and let the calendar flip to a new year without making any big moves.

Municipals are sitting out the ups and downs in equities and UST, with $12 million scheduled for the primary in the final week of 2021.

Experts share their insights on the current state and road ahead for the public finance sector.

Tax risks continue to linger as they are preserved as a potential offset for whatever level of spending all 50 Democratic senators can agree to, but potential approval of the legislation remains a question mark.

U.S. Treasuries saw losses pushing municipal to UST ratios on the 10- and 30-year lower again.

An influx of federal funds contributed to the stable outlook.

The Build Back Better in its current form essentially has been killed by Sen. Joe Manchin, likely limiting the potential for tax hikes in the coming year.

Municipal volume is estimated at a lean $558.8 million with $494.7 million of negotiated deals and $64.2 million on the competitive slate. Thirty-day visible supply is at $3.17 billion.

Despite outside pressures, municipal fundamentals are strong with improving credit pictures, issuers flush with federal cash and the ongoing supply-demand imbalance.

The index, which tracks over 2,800 securities, went live Wednesday. While ESG investment considerations have grown around the globe, the muni market is at the beginning stages and there is no universally accepted definition of ESG.

It marked the 40th straight week of positive flows into the long-term funds and brought the total inflows for this year near $82 billion. Exchanged-traded funds saw $168M of inflows.

Over the past year, Lumesis has expanded the capabilities of its DIVER suite of muni-focused business and regulatory solutions.

Triple-A yield curves were unchanged on the day and mostly have not budged but a basis point in spots since the end of November.

The agreement will move along the Penn Station Access commuter rail undertaking and East River tunnel fix-ups.

Coming off last week's $19.5 million influx of weekly new issues, supply this week is lower as the market watches the Federal Open Market Committee meeting.

The U.S. labor shortage is bearing down on hospitals' bottom line and shows no signs of letting up next year according to rating agencies' 2022 sector outlooks.

There are $8.127 billion of negotiated deals on tap and a mere $367.4 million of competitive loans slated, none over $100 million. Thirty-day visible supply totals $9.9 billion and net negative supply is at $8.4 billion.

State officials will wrap up a busy year a sale that includes a social bonds component.

Municipal yield curves were little changed for the seventh straight session while Refinitiv Lipper reported the 40th week of inflows into municipal bond mutual funds, with high-yield seeing a large increase week over week.

The Investment Company Institute reported $289 million of inflows into municipal bond mutual funds in the week ending Dec. 1, down from $965 million in the previous week.