Markets

Up to $505 million of bonds could be issued.

"We are entering a period during the summer months in which demand historically outweighs very limited supply, resulting in a supportive performance environment but more limited investment opportunities," said J. Robert Lind of Lind Capital Partners.

Issuance this year has been "relentless" since the start of the year, while historically the "new-issue machine" takes a while to get rolling, said Scott Diamond, co-head of AM Municipal Fixed Income at Goldman Sachs.

This week has the July 4th holiday, with only $2.5 billion on tap in the primary bond market, though investors have tens of billions in reinvestment cash.

The Senate advanced the One Big Beautiful Bill Act through a procedural vote, opening the legislation for debate followed by Monday's vote-a-rama.

The guidance comes as the tender market has grown from zero to $48 billion since 2019.

Issuance for the week of June 30 is estimated at $2.495 billion, with $2.039 billion of negotiated deals and $456.3 million of competitive deals on tap, according to LSEG.

Investors added $79.6 million to municipal bond mutual funds in the week ended Wednesday, following $110 million of inflows the prior week, according to LSEG Lipper data.

Soon after it sold $687.3 million of bonds, Chicago returned to market with $82.55 million for housing and economic development in a deal set to close Monday.

The ratings agency said fund balances had declined as a percent of operating revenues and are expected to decline further.