Markets

Texas factory activity, as measured by the production index, “expanded at a faster pace in February.”

U.S. sales of new homes unexpectedly fell in January to the lowest level since August as borrowing costs rose and winter weather depressed demand.

The Chicago Fed National Activity Index for January decreased to 0.12 from a downwardly revised 0.14 in December.

Even though interest rates have not risen as fast as the bond insurance industry hoped for, and 2017 saw the contraction of an active insurer, the bond insurance wrap remains relatively stable in terms of market share.

Long-term issuance in the municipal market virtually matched its record high set in 2016, against the backdrop of tax reform that produced an end-of-year flood of volume, but the outlook for 2018 is less rosy.

Market sources say the week's deals will be `well received,' while a new report cast doubt on prospects for a near-term supply pickup.

Northeast municipal bond issuance was up 4% from 2016 to $121.3 billion.

Buyers will vie for about $4.8 billion of bonds next week.

The plan would expand flexibility and broaden the uses of tax-exempt private activity bonds.

Investors should minimize risk, upgrade quality, and remain defensive awaiting higher rates and price discovery, according to analyst reports this week.