Markets

The larger supply calendar should be "taken down well given the persistent inflows into our market and investors are still sitting on plenty of cash," said Daryl Clements, a municipal portfolio manager at AllianceBernstein.

With supply ballooning, reinvestment dollars at lows of the year, J.P. Morgan's Peter DeGroot argues the next few weeks could offer the best opportunity to buy bonds of the year – and possibly the rate cycle. DeGroot talks about this, plus potential impacts of shifting investor behavior on market liquidity, and what the upcoming election might mean for tax policy and the muni market. Lynne Funk hosts.

Disruption was on the minds of those gathered in Chicago last week for MuniTech, a conference billed as a magnet for the "tech-forward" in public finance.

"As September draws to a close, some dynamics may prevail in October but others could undergo a shift," said NewSquare Capital's Kim Olsan. "One aspect that will continue is the level of supply coming to market." 

September volume came in over $44 billion leading volume year-to-date to hit more than $380 billion, just shy of 2023's full-year total issuance.

Bonds will finance construction of the South Coast Rail Project, which will restore commuter rail service between Boston and southeastern Massachusetts.

Municipal triple-A yield curves closed out the week with few changes, valuations were little changed, but at attractive levels, and the forward calendar climbs to more than $10 billion to open the fourth quarter.

Minneapolis will sell $123.6 million of Series 2024 general obligation bonds via competitive sale on Tuesday, buoyed by triple-A bond ratings.

Ramirez & Co. continues growth plans with the addition of bankers in Texas, Florida and New York.

High-yield muni issuance totals $20 billion year-to-date, "reflecting normalization from relatively depressed levels in 2023 ($7.6 billion over the comparable period), and now virtually equal to the trailing five-year average for the period ($20.1 billion)," said J.P. Morgan strategists, led by Peter DeGroot.