Markets

Even with the news that New York City is looking to potentially borrow $7B through its Transitional Finance Authority as it faces $9B in lower revenues, the market didn’t blink and TFAs traded firmer.

The coronvirus pandemic led to economic declines and contacts are unsure how quick recovery will be.

With the latest federal rescue package stalled, New York's mayor has asked state lawmakers to authorize an additional $7 billion in bonding.

Credit concern is being lost somewhat in pricing munis and traders said they are looking for alternative benchmarks, even turning to corporates and U.S. Treasuries to price the market.

Although up from the worst levels, indicators are not signalling recovery.

The primary supply for the holiday-shortened week is projected to dip to just over $4 billion, with a mix of tax-exempt and taxable issuance led by Colorado’s $500 million of certificates of participation.

Investors, while confident long-term about the transit authority, worry about immediate risks, Chairman Patrick Foye said in a letter.

Taxable equivalent yields on exempts are close to converging into taxables.

Moody’s Investors service downgraded the archdiocese to Baa1 from A1.

Numbers in the fall will offer clearer picture of where economy is.