Midwest

The muni market saw $379.992 billion of debt issued in 2023, only $11.076 billion less than the lackluster $391.068 billion seen in 2022.

Illinois saw an uptick in its financial fortunes during the past fiscal year, one of the few times the state's net position has improved in recent years.

Without money to expand a key artery, but helped by a federal "Mega Grant," Indiana is pursuing tactics like dynamic shoulder lanes to boost capacity.

Michigan is paying down debts of six local school districts – two of which have closed or merged with neighbors – including outstanding bond balances.

A hotel tax that supports the authority's bonds has recovered strongly from the pandemic, the rating agency said.

So far, the temporary Bally's casino in Chicago has brought in about a quarter of the tax revenue it needs to generate to keep up with budget expectations.

State bonds are a key part of the two-state plan to replace the aging Blatnik Bridge, but officials are also seeking more than $1 billion in federal grants.

Secondary trading showed clear strength across the yield curve Thursday with bellwether names trading up significantly from recent prints and original pricing levels. New-issues in the primary benefited with issuers repricing to lower yields and tight to triple-A curves.

The municipal bond rally has brought two big Illinois issuers into the market with plans to sell refunding bonds this week.

Issuers should "absolutely be issuing if possible; the end of year outlook is positive on the surface but substantial volatility lies just below and could arrest or interrupt what have been easier primary market conditions," said MMA's Matt Fabian.