Finance

"Should September's positive returns hold as we expect, it would mark the fourth consecutive month of positive total returns — the first such period since the five-month period spanning from March through July 2021," BofA strategists Yingchen Li and Ian Rogow said.

Warnings, finger pointing, and political infighting have consumed talks around a continuing resolution, but the details of the upcoming funding package are expected to be ironed out over the weekend for a likely vote early next week.

The airport's first new money foray into the muni market in nearly 12 years will begin to fund a $1.3 billion transformation plan.

While the municipal market barely budged following the Fed's decision to cut rates 50 basis points, Thursday saw muni yields rise up to two basis points, depending on the scale, but still lagged the weakness in USTs. LSEG Lipper reported $716 million of inflows into municipal bond mutual funds.

The product is designed to give SOLVE's customers visibility into "next-trade" pricing data for more than 900,000 munis.

After getting positive outlooks from three rating agencies since 2023, Oklahoma received its first upgrade.

The agency cited a sustained commitment to healthy reserves and structural balance.

The city of Clyde defaulted in August and recently revealed it used debt proceeds for debt payments in a manner that "disguised the deficit cash flow."

The record pace of municipal bond supply this year is driven in part by cities and states realizing projects won't get any cheaper if they wait.

The competitive sale comes as the market prepares for a very New York-heavy week next week in the primary.

For municipals, Wednesday "marks a crucial step forward, perfectly aligned with the current risk landscape," said James Pruskowski, chief investment officer for 16Rock Asset Management.

Fed rate cuts "should lead to positive price action for both taxable and tax-exempt bonds, and current nominal yields remain well above where they were when the Fed was more dovish, implying generous room to rally from here," said Matt Fabian, a partner at Municipal Market Analytics, Inc.

Despite the underperformance to USTs, munis saw positive momentum during the first two weeks of September with the asset class returning 0.68% so far this month and 1.99% year-to-date.

While supply falls next week as investors await their first Fed rate cut in four years, it should pick up after the FOMC, Barclays PLC said, adding the 30-day visible pipeline "is at relatively manageable levels at the moment." Bond Buyer 30-day visible supply is at $10.09 billion.

Municipal bond mutual funds saw inflows as investors added $1.258 billion to funds — the second-largest inflow figure year-to-date after $1.413 billion of inflows for the week ending Jan. 31.

Moodys says it is placing additional weight on the states' Aaa ratings in determining the Garvee ratings.

The commission approved $73 million of limited obligation bonds for Rowan County schools.

The August consumer price index showed inflation remains above the Federal Reserve's target level and makes a 50-basis-point rate cut next week unlikely, economists said. Further, many expect the market will be disappointed going forward, as future cuts will likely be shallower than expected.

Municipals lagged the UST moves again, cheapening ratios and creating a valuable entry point for investors looking for compelling taxable equivalent yields, particularly 10-years and out.

Fitch also upgraded the city's Georgia Municipal Association certificates of participation (city of Atlanta public safety projects) to AA-plus from AA.