Markets

While yields on the 20-bond, 11-bond, and revenue bond indexes climbed two basis points in the week ended Nov. 2, the Bond Buyer 40 index's yield declined one.

Market participants reacted negatively to the proposal in the tax reform bill to eliminate advanced refundings and private activity bonds, saying it would crimp volume and the savings issuers can get when rates fall. In the primary, strong demand met a Virginia issuer's $737 million PAB.

The U.S. Virgin Islands expects to get parts of an $800 million federal loan by mid-November.

Strong legal and structural protections earned the debt top grades from Kroll and Fitch. S&P wasn't as bullish.

Moody's cited the city's reliance on nonrecurring revenues.

Moody’s Investors Service moved the outlook to negative in advance of a $40 million revenue bond sale.

Municipals and Treasuries were stronger around midday, with the GOP releasing some details of its tax bill and ahead of President Trump’s expected nomination of Jerome Powell as Fed chair.

Retail investors are overcoming concern over interest rates and tax reform by extending duration, upgrading to high-quality, and buying defensive premium bonds.

Municipal bond prices rose as the week's biggest issue is scheduled to price.

The New York economy is expanding despite a drop in revenues, the Institute for Supply Management-New York’s Report on Business index, released Thursday, indicated.