Markets

S&P said the rating on the senior living revenue bonds Capital Trust Agency issued for borrower H-Bay Ministries Inc. of Texas will now be withdrawn in 30 days.

The Dormitory Authority of the State of New York overtook California for the most issuance, while New York issuers made up half of the top 10.

More of the same from the FOMC did little to move UST or munis. ICI reported the 17th consecutive week of inflows at $1.98 billion. July is looking good for municipal issuers.

As issuance increased, the top municipal bond underwriters saw their total par underwritten rise by 14.4% from the first half of 2020.

The calendar includes $4.25 billion of new money and $2.5 billion of refundings and reofferings, New York State's comptroller said.

U.S. Treasury 10- and 30-year yields hit February lows. Large blocks of high-grades in secondary trading led triple-A benchmarks to lower yields by two to four basis points across the curve.

High-yield municipal bond returns are more than 6% so far in the year as Nuveen expands its reach in the sector with a new "interval" high-yield fund.

Participants consider whether Illinois' recent upgrade is a one-off due to the flood of federal aid or a turning of the tide toward better fiscal decision-making that could help it climb further up the rating scale.

With better-than-expected payrolls, economists still caution full recovery is a ways away. Muni participants are closely following how the Fed's action — or inaction — will affect the municipal market going forward.

The broader market awaits Friday’s nonfarm payrolls report, but Thursday brought some helpful labor news — unemployment claims dropped to the lowest since before the pandemic-caused economic shutdowns and layoffs plunged in June.