After a few weeks of rising yields and little issuance due to post-election jitters, the market will finally see its first real dose of issuance this week with an estimated $9.1 billion expected to hit screens.
After a long weekend full of family, friends and turkey, market participants are back at work and will keep an eye on yields.
U.S. Treasuries were narrowly mixed on Monday. The yield on the two-year was unchanged from 1.12% on Friday, the 10-year Treasury dropped to 2.33% from 2.35%, while the yield on the 30-year Treasury bond decreased to 2.99% from 3.00%.
The yield on the 10-year benchmark muni general obligation was flat Friday from 2.37% on Wednesday, while the yield on the 30-year was steady at 3.10%, according to a final read of Municipal Market Data's triple-A scale.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 9,769 trades on Friday on volume of $2.99 billion.
Prior Week's Actively Traded Issues
Revenue bonds comprised 59.78% of new issuance in the week ended Nov. 25, up from 59.44% in the previous week, according to Markit. General obligation bonds comprised 35.61% of total issuance, up from 35.51%, while taxable bonds made up 4.61%, down from 5.05%.
Volume for the week is estimated at $9.1 billion, comprised of $6.72 billion of negotiated deals and $2.38 billion of competitive sales.
There are no large deals scheduled to be priced Monday, but the action will get underway on Tuesday.
Raymond James is scheduled to price the New York City Municipal Water Authority's $400 million of water and sewer system second general resolution revenue bonds on Tuesday. The deal is rated Aa1 by Moody's Investors Service and AA-plus by S&P Global Ratings and Fitch Ratings.
Wells Fargo is expected to price the Board of Regents of the University of Texas' $300 million of system revenue financing system bonds on Tuesday. The deal should mature serially from 2017 through 2028 and is rated triple-A by Moody's, S&P and Fitch.
In the competitive arena, the city and county of San Francisco Public Utility Commission will be selling $256.485 million of water revenue taxable green bonds. The deal is rated Aa3 by Moody's and AA-minus by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $2.39 billion to $16.78 billion on Monday. The total is comprised of $4.39 billion of competitive sales and $12.39 billion of negotiated deals.
Lipper: Muni Bond Funds See Outflows
Municipal bond funds again saw outflows as investors pulled cash out of the market, according to Lipper data released late Thursday.
The weekly reporters saw $2.232 billion of outflows in the week ended Nov. 23, after outflows of $3.012 billion in the previous week.
The four-week moving average declined to negative $1.376 billion after being in the red at negative $734.368 million in the previous week. A moving average is an analytical tool used to smooth out price changes by filtering out fluctuations.
Long-term muni bond funds experienced outflows, losing $1.467 billion in the latest week after outflows of $2.585 billion in the previous week. Intermediate-term funds had outflows of $500.210 million after outflows of $332.967 million in the prior week.
National funds had outflows of $1.849 billion after outflows of $2.685 billion in the previous week. High-yield muni funds reported outflows of $929.623 million in the latest reporting week, after outflows of $1.585 billion the previous week.
Exchange traded funds saw outflows of $77.721 million, after outflows of $212.832 million in the previous week.
Tax-Exempt Money Market Fund Inflows
Tax-exempt money market funds experienced inflows of $447.0 million, bringing total net assets to $130.04 billion in the week ended Nov. 21, according to The Money Fund Report, a service of iMoneyNet.com. This followed an inflow of $303.1 million to $129.59 billion in the previous week.
The average, seven-day simple yield for the 237 weekly reporting tax-exempt funds rose to 0.16% from 0.15% in the previous week.
The total net assets of the 867 weekly reporting taxable money funds increased $23.02 billion to $2.547 trillion in the week ended Nov. 22, after an inflow of $6.51 billion to $2.524 trillion the week before.
The average, seven-day simple yield for the taxable money funds was unchanged from 0.15% in the previous week.
Overall, the combined total net assets of the 1,104 weekly reporting money funds rose $23.46 billion to $2.677 trillion in the week ended Nov. 22 after inflows of $6.81 billion to $2.654 trillion in the prior week.