Markets

After digit-double cuts out long Wednesday, muni yields rose an additional two to four basis points, depending on the curve, on Thursday.

"The supply/demand dynamic is a headwind for the muni market this week as supply is expected to be elevated," said Cooper Howard, a fixed income strategist at Charles Schwab.

"The ever-shifting narrative regarding President Trump's tariff policies is throwing fuel on the fire of unpredictability," said SWBC's Chris Brigati.

The BDA met last week ahead of the House Ways and Means launching talks on what the reconciliation tax package may include.

State Treasuer Brad Briner said he hopes a longer maximum maturity will lead more borrowers to use the state conduit instead of the Public Finance Authority.

The market rally "took a bit of a breather last week, with yields rising across the curve," said Daryl Clements, a portfolio manager at AllianceBernstein.

In 2017, the BDA hired a lobbying firm as Congress wrote a tax reform bill. This time, the group opted for a strategic communications firm.

"March is not an overly positive month for munis, but a lot will depend on U.S. Treasuries," said Barclays strategist Mikhail Foux.

The $550 million deal from an issuer with two triple-A ratings includes about $250 million for refunding and an $85 million taxable piece.

"Markets fixate on one risk at a time, and there's no shortage right now. Volatility has spiked, liquidity is thin, and buyers are sidelined — but that's temporary," said James Pruskowski, chief investment officer at 16Rock Asset Management.