Markets

The markets are in a "holding pattern" as they wait for news on the Strait of Hormuz and Fed policy, FHN Financial's Ajay Thomas said.

The demand has its limits, however.

Market Intelligence analyst Jeff Lipton says muni investors should treat July as a reset, not a retreat, with positive flows, compelling taxable-equivalent yields and selective repricing supporting modest single-digit returns by yearend.

This week, issuance falls to an estimated $9.651 billion, with $6.611 billion of negotiated deals on tap and $3.04 billion of competitives, according to LSEG.

The payroll data lowered fears of a rate hike, boosting munis and USTs.

Lifting the PABs cap is a priority for transportation advocates, lawmakers from both sides of the aisle and the Trump administration.

Geopolitical and macroeconomic factors are hurting USTs, but the muni market still has momentum, said Hennion & Walsh's James Pruskowski.

The larger tax-exempt portion of the bonds reportedly were 18 times oversubscribed.

The Texas city plans to bring general obligation bonds, certificates of obligation and tax notes to market later this month.

The deal was too highly leveraged for some investors.