Tennessee

A large increase in new money bond issuance pushed the 11-state region to a big year-over-year volume gain.

On a year-over-year basis, state tax revenues were up $321.1 million while the overall growth rate was 20.9%.

According to disclosure notices, payments on two series of bonds issued in 2017 weren’t made on July 1 because of insufficient funds.

The short end of the yield curve faced pressure from a cheaper UST five-year. As the flattening trend in UST takes hold, demand for duration will also spill over into the tax-exempt space, with long-dated munis continuing to outperform, analysts say.

If the market holds, the state could also receive the lowest recorded true interest cost in its history of general obligation bond sales.

With the heavily traveled Interstate 40 bridge over the Mississippi River closed for repairs, Arkansas and Tennessee are seeking federal aid to cover the cost.

The federal Tennessee Valley Authority has been pushed to offer better terms to local utilities in the Southeast to keep them in its fold.

The deal was the largest in the authority’s history, with the lowest ever interest rate for one of its sales and netting a record-breaking $112 million in interest cost savings.

Taking advantage of low rates, the state's School Bond Authority is selling the largest bond issue in its history to refund outstanding debt.

As travel declines during the coronavirus pandemic, munis backed by tourists' cash may come under increasing financial pressure.