Markets

Investors pulled $600 million from municipal bond mutual funds in the week ended Wednesday, according to LSEG.

The East San Francisco Bay area water and wastewater utility will price into a market that has seen increased revenue bond issuance.

Despite headwinds in the higher education sector, Louisiana State has enjoyed rising undergraduate enrollment.

"Rates, not fundamentals, continue to drive benchmark yields higher, leaving munis on track for their fourth-worst monthly performance in 15 years," said James Pruskowski, managing director at Hennion & Walsh.

"You would think global instability leads to flight for quality, but you also have the inflationary pressures that come with higher oil prices. I would say the inflationary pressures have been winning, and that's why you're seeing Treasury and muni rates move higher," said Keith Richard, head of public finance at Siebert Williams Shank.

The AA-minus-rated bonds come to market as the hospital sector continues to navigate through rising expenses and other challenges.

"We are in interesting times as the market must now balance these robust technicals against a backdrop of geopolitical tension in the Middle East and the nomination of Kevin Warsh, whose hawkish reputation is already being weighed by participants," said Jason Wong, vice president of municipals at AmeriVet Securities.

Three rating agencies now have negative outlooks on New York City. 

"The secondary infrastructure demands [of data centers] will increasingly flow through to municipal balance sheets, driving incremental issuance across multiple sectors," said J.P. Morgan strategists.