Hawaii

Month-to-date returns for municipals are in the red with the Bloomberg Fixed Income Indices municipal index returning -0.12%, high-yield at -0.15% and taxables at -0.32%.

Both S&P Global Ratings and Moody's Investors Service lifted their outlooks, citing a rebound from pandemic-driven budget pressures.

Other post-employment liabilities are more material problems for one in ten state and local governments, according to Moody's Investors Service.

Honolulu plans to price $725.4 million of double-A-plus GOs next week; a significant chunk of the deal will support Oahu's troubled rail transit project.

Hawaii lawmakers made changes to the budget this week in response to a flurry of vetoes from Gov. David Ige.

Hawaii lawmakers approved the budget before Treasury guidance banned the use of federal funds for debt payments or reserves.

Under Hawaii's system, the governor, David Ige, signals his intent to veto and then negotiates with lawmakers before making them formal.

A reported preliminary 25.8% drop in May issuance shows how strong fund inflows, improving credit and the reopening of governments are keeping the muni market issuer friendly.

Strong technicals have been the theme, and with federal aid and better-than-expected tax receipts coming in, issuers are not tapping the market as much as investors would hope.

States are well-positioned to emerge from COVID-19, the investment firm said in its annual grading.