Markets

New York and Illinois deals top Tuesday’s new issue slate as municipal bond traders get ready to gobble up some deals in the primary.

Final demand PPI rose 0.4% in October, well above the 0.1% expected, and was up 0.4% excluding food and energy prices.

Small businesses were more optimistic in October as sales expectations grew, according to National Federation of Independent Business.

Developments on the tax reform front were not far from municipal bond traders' minds as they saw the first of the week’s new issues hit the screens on Monday.

Estimated total bond volume for the week is $9.897 billion, which consists of $6.644 billion of negotiated deals and $3.253 billion of competitive sales.

Tax reform legislation will be front and center this week, snatching the market’s attention as Congress moves ahead with measures that will change the bond marketplace in the near- and long-term. Both the House and Senate are taking up muni proposals that will directly impact issuers, underwriters and bond buyers.

Consumers’ inflation expectations held for three-year, but rose for the one-year horizon.

Municipal bond traders will see a chunky new issue calendar this week as the market’s focus will be on Washington, where Congress will continue to work on tax reform legislation.

The municipal market will get another healthy dose of issuance in the final full week before Thanksgiving. The calendar is chock full of deals from Illinois, as all issuers look to price bonds before the tax laws change.

The GO bonds for climate change and housing will boost the economy, Moody’s says.