Markets

The federal government ran a $107.7 billion deficit in August, the Treasury Department reported Thursday.

Top-quality municipal bonds were weaker at mid-session, traders said, as the market is seeing more deals hit the screens.

Labor market “activity declined and momentum remained high in August,” the Federal Reserve Bank of Kansas City said.

Continued lack of a budget will mean a spending freeze and further rating agency backlash.

The municipal bond market will see more deals hit the screens on Wednesday, led by a big Maryland competitive sale and a second day of retail orders for the New York City offering.

Final demand PPI rose 0.2% in August and was up 0.1% excluding food and energy prices, data released Wednesday showed.

Top-rated municipal bonds ended weaker on Tuesday, according to traders, as the first of this week’s new deals hit the screens, led by sales from New York City and Louisiana.

The system reported strong investor demand for $350 million of taxable debt earlier in the week.

The new money and refunding bonds are being sold Wednesday.

The rating agency cited warnings by Mayor Luke Bronin that Connecticut's capital could go bankrupt in 60 days.