Even with an incrementally improving economy, it’s still the simple dynamics of supply and demand that continue to guide the municipal market. And currently, there is still more demand than supply.
This week’s calendar should do little to change the imbalance. Primary market issuance for the muni market is expected to total $3.96 billion this week. That represents a small, insubstantial uptick in volume from last week’s revised figure of $3.49 billion.