Markets

Hawkish Fed comments caused UST yields to rise by as much as 17 basis points, just as munis had caught a bid. The new-issue market fared well in digesting large deals amid the volatility.

Municipals have taken a hit in the first months of 2022, but higher yield levels and cheaper ratios have offered possibilities for both retail and institutional buyers, analysts say.

Montebello Unified priced a $12.2 million tax-exempt refunding, but didn't execute a planned taxable tranche.

The $600 million deal is the authority's first 100% green transaction and it is also the first ever with bonds backed solely by revenue earned from specific transmission projects instead of the authority's general credit.

Firms remain uncertain about how state laws that apply litmus tests for banks and others seeking contracts with governmental entities impact them.

Next week's supply is slated to be $10.166 billion, $8.982 billion of negotiated deals and $1.184 billion of competitive loans. A larger primary calendar is led by two billion-dollar airport deals.

Investors pulled more from municipal bond mutual funds in the latest week, with Refinitiv Lipper reporting $2.038 billion of outflows, up from $1.503 billion of outflows in the previous week.

Total March volume was $39.363 billion in 793 deals versus $47.763 billion in 1,218 issues a year earlier but above the $34.363 billion average.

Underwriters sidelined by the state's new litmus test on firearms policies have bought many past Texas TRANs, but the state won't need to issue any this year.

The city is pricing $168 million of subordinate wastewater revenue bonds on Tuesday. The system's main plant spilled raw sewage into Santa Monica Bay last year.