Markets

Minnesota’s projection of a $2.4 billion gap in the current budget cycle remains on target, but another $4.7 billion gap looms in the next two-year budget as the toll mounts for the COVID-19-induced economic shutdown and recession. The state plans to sell $1.2 billion of GOs next week.

The ISM manufacturing index hit a 16-month high, but construction spending unexpectedly fell in June.

The rating agency affirmed the U.S. at AAA but said the outlook cut reflects ongoing deterioration in U.S. public finances.

Municipal bonds finished out the month on a strong note, with yields dropping by as much as two basis points on Friday.

Municipal issuers continue to swarm the muni market with taxable muni deals, as July accounted for $42.6 billion — the highest total for the month since at least 1986.

The letter, which includes signatures by 42 Republicans, requests an enhancement to the 4% Low-Income Tax Credit.

Friday's batch of economic indicators offered some bright spots and some dark.

Muni yields fell by as much as three basis points, according to readings on the AAA muni scales. However, some traders and analysts said this market is too tight given COVID-19 threats. Lipper reported $1.8 billion of inflows in the latest week.

San Francisco International Airport will issue $291 million in refunding bonds amid belt-tightening efforts driven by a massive drop in passengers.

Rising coronavirus cases could dim the rebound expected in the third quarter, experts say.