Markets News from Bond Buyer

SWBC's Chris Brigati said he expects munis to continue to outperform Treasuries, unless USTs aggressively sell off.

Market Intelligence analyst Jeff Lipton explains why constrained state budgets should not be mistaken for broad credit deterioration, pointing to rainy-day funds, revenue diversity, low debt burdens and strong debt-service protections as key stabilizers.

The market outlook is mixed, according to Barclays strategists.

The College of the Holy Cross, enjoying rising student demand in a time when other private schools are struggling, will take out variable-rate and taxable debt.

The FOMC's hawkish tone hasn't cost munis yet, but the reaction from USTs may bring pressure, according to NewSquare Capital's Kim Olsan.

The tobacco sector has been among the worst-performing in the muni market this year, but some say it's still overvalued.

For the first time since 2023, Georgia will bring its general obligation bonds to the municipal bond market, with a $1.57 billion competitive deal.

Favorable conditions for munis helped the asset class stay afloat, despite a hawkish FOMC.

Market Intelligence analyst Jeff Lipton breaks down how security selection, sector allocation, curve positioning and carry can generate excess returns in high-yield munis, while warning that weak cash flow, a lack of economic viability, limited liquidity and thin disclosure can quickly undermine value.

Munis were little changed, but geopolitical and market conditions could bode well for the sector, MMA's Matt Fabian said.

The Texas city's $115 million general obligation bond sale comes as a water supply emergency and potential further negative rating actions loom.

Investors want to see what happens with the Fed and the Iran peace deal before they react, said Schwab's Cooper Howard.

Market Intelligence analyst Jeff Lipton maps where credit remains stable and where caution is warranted in his mid-year scorecard, flagging pressure points in higher education, K-12, tobacco and parts of local government while outlining the structural strengths supporting states, airports and other essential-service sectors.

Supply has been robust in June but issuance falls to an estimated $8.137 billion this week.

There has been some "capitulation" in munis lately. The asset class was outperforming USTs until very recently, said Chris Brigati, managing director and CIO at SWBC.

Many factors impact the performance of munis, and, this year, everything seems to be working for the positive.

City officials attribute the structural deficit to inflation-driven spending increases combined with revenues that have not kept pace.

Muni yields were cut up to five basis points Thursday, depending on the scale, after yields rose up to two basis points the day prior.

Market Intelligence analyst Jeff Lipton explains how California Mello-Roos land-secured bonds can add yield and diversification, and outlines the underwriting checklist investors should use to balance development risk against structural protections.

The initial reaction following the CPI report didn't "move the needle" in the bond market, as the 10-year UST yield was just over 4.5%, said Jay Woods, chief market strategist at Freedom Capital Markets.