Municipal bonds were stronger on Thursday according to a read of the MBIS benchmark scale, which showed yields falling as much as two basis points all along the curve. Treasury bonds were also stronger as stocks staged a rebound.

"Municipals have been performing well, driven by strong demand and muted supply," said Shaun Burgess, a portfolio manager and analyst at Cumberland Advisors. "New issues have been well received and are generally getting oversubscribed," he said.

Primary market
In the primary on Thursday, Wells Fargo Securities priced Charlotte, N.C.’s $410.51 million of Series 2018 water and sewer system refunding revenue bonds.

The deal is rated triple-A by Moody’s Investors Service, S&P Global Ratings and Fitch Ratings.

Thursday’s bond offering

North Carolina:
Click here for the Charlotte pricing

Bond Buyer 30-day visible supply at $8.12B
The Bond Buyer's 30-day visible supply calendar decreased $1.1 billion to $8.12 billion on Thursday. The total is comprised of $3.93 billion of competitive sales and $4.19 billion of negotiated deals.

Tax-exempt money market funds saw inflows
Tax-exempt money market funds experienced intflows of $573.3 million, raising their total net assets to $133.72 billion in the week ended April 10, according to The Money Fund Report, a service of iMoneyNet.com.

This followed an outflow of $730.2 billion on to $133.15 billion in the previous week and marks the first time in nine weeks that it has seen inflows.

The average, seven-day simple yield for the 201 weekly reporting tax-exempt funds climbed to 1.09% from 1.03% the previous week.

The total net assets of the 829 weekly reporting taxable money funds decreased $15.47 billion to $2.659 trillion in the week ended April 9, after an inflow of $11.59 billion to $2.675 trillion the week before.

The average, seven-day simple yield for the taxable money funds increased to 1.30% from 1.29% from the prior week.

Overall, the combined total net assets of the 1,030 weekly reporting money funds decreased $14.89 billion to $2.793 trillion in the week ended April 9, after inflows of $10.86 billion to $2.808 trillion in the prior week.

ICI: Long-term muni funds see $110M outflow
Long-term municipal bond funds saw an outflow of $110 million in the week ended April 4, the Investment Company Institute reported on Wednesday.

This followed an inflow of $126 million into the tax-exempt mutual funds in the week ended March 28 and inflows of $769 million, $703 million and $214 million in the three prior weeks.

Taxable bond funds saw an estimated inflow of $3.06 billion in the latest reporting week, after seeing an inflow of $137 million in the previous week.

ICI said the total estimated outflows to long-term mutual funds and exchange-traded funds were $1.93 billion for the week ended April 4 after outflows of $13.08 billion in the prior week.

Previous session's activity
The Municipal Securities Rulemaking Board reported 45,737 trades on Wednesday on volume of $16.29 billion.

California, New York and Texas were the states with the most trades, with the Golden State taking 17.695% of the market, Empire State taking 13.625% and the Lone Star State taking 10.576%.

Treasury details upcoming sales
The Treasury Department announced these auctions:

  • $16 billion of five-year TIPs selling on April 19;
  • $42 billion of 182-day bills selling on April 16; and
  • $48 billion of 91-day bills selling on April 16.

Gary Siegel contributed to this report.

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, or contact Vanessa Kim at 212-803-8474 for more information.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.
Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.
Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.
Christine Albano

Christine Albano

Christine Albano is a reporter in the Investor’s & Investing beat, which she has covered for the past two decades. She has a wide range of buy side sources in the municipal market.