A closed muni market resulted in a 'sleepy' Monday

Register now


In observance of Veterans Day, the bond market was closed on Monday. Stocks were mixed, with the Dow up 0.007% and the S&P 500 and Nasdaq in the red.

“It was a sleepy Monday, that’s for sure,” said one New York trader. “It was like a ghost town on my trading floor and in my office today and I am sure that was the case for most folks.”

Although it is a short week in terms of the number of days, the muni market won’t see a shortage of supply.

The market is expected to digest $11.15 billion of new paper for the week, slightly down from the revised total of $11.67 billion in the past week. The calendar consists of $8.41 billion of negotiated deals and $2.74 billion of competitive sales. The estimated volume is way above the year's weekly average of $8.96 billion.

The week will progressively get busier with each passing day, as the bigger deals are not slated to hit the market until Wednesday and Thursday.

“We will ease into the action this week,” a Southern trader said. “Which isn’t the worst thing in the world, considering how sleepy the market is today with more than half the industry not at their desks since the bond market is closed.”

The action will get started on Tuesday when Citi prices Main Street Natural Gas Inc.’s (A3/ / ) $527.035 million of gas supply revenue bonds. The deal is expected to be structured as maturing serially from 2020 through 2026, as well as a term bond in 2050.

In the competitive arena, Palm Beach County, Fla. ( / /AA+) is expected to sell a total of $109.9 million in three separate sales.

“With the number of people out today, the market is moving sideways today,” the trader noted. “Things should get back to normal on Tuesday.”

Last week's actively traded issues
Revenue bonds made up 52.13% of total new issuance in the week ended Nov. 1, down from 52.70% in the prior week, according to IHS Markit. General obligation bonds were 42.65%, up from 41.71%, while taxable bonds accounted for 5.22%, down from 5.59%.


Some of the most actively traded munis by type in the week were from Puerto Rico and Florida issuers.

In the GO bond sector, the Commonwealth of Puerto Rico, 8s of 2035 traded 19 times. In the revenue bond sector, the Broward County, Florida, 4s of 2049 traded 57 times. In the taxable bond sector, the Broward County, 3.477s of 2043 traded 88 times.

Previous session's activity
The MSRB reported 28,185 trades Friday on volume of $10.69 billion. The 30-day average trade summary showed on a par amount basis of $10.76 million that customers bought $6.04 million, customers sold $2.84 million and interdealer trades totaled $1.87 million.

California, New York and Texas were most traded, with the Golden State taking 13.58% of the market, the Empire State taking 11.889% and the Lone Star State taking 9.264%.

The most actively traded securities were Utah Transportation Authority sales tax revenue taxable refunding, 3.443s of 2042 traded 13 times on volume of $47.64 million.

Data appearing in this article from Municipal Bond Information Services, including the MBIS municipal bond index, is available on The Bond Buyer Data Workstation. Click here for a brief tour of the Workstation.

For reprint and licensing requests for this article, click here.