A day after President Donald Trump announced an extension to the ceasefire with Iran, muni yields were steady Wednesday, U.S. Treasury yields were little changed and equities ended up.
The ceasefire extension "possibly offers less clues as to what a permanent resolution may look like," said Mohammed Murad, head of credit research for PT Asset Management.
"The markets may have operated under the assumption that this would be a short flare-up in the region, but the current status could suggest a longer timeframe," Murad said. "Regardless of the ceasefire extension, ship traffic is still constrained and I think the market may start to mull over whether first-order impacts to municipal credit would be meaningful in a scenario of higher for longer oil."
New-issue market
In the primary market Wednesday, Goldman Sachs priced the San Diego Unified School District (Aa2//AAA/AAA/) $300.45 million of general obligation refunding bonds. The first tranche, $75.125 million of Series R-9 bonds, saw 5s of 7/2026 at 2.165% and 5s of 2029 at 2.19%, noncall.
The second tranche, $104.035 million of Series SR-6 bonds, saw 5s of 7/2028 at 2.11%, 5s of 2031 at 2.34%, 5s of 2036 at 2.76% and 5s of 2041 at 3.25%, callable 7/1/2036.
The third tranche, $121.29 million of Series ZR-7 bonds, saw 5s of 7/2026 at 2.165%, 5s of 2031 at 2.34%, 5s of 2043 at 3.50% and 5s of 2045 at 3.74%, noncall.
In the competitive market, Massachusetts (Aa1/AA+/AA+/) sold $360 million of GOs, consolidated loan of 2026, Series C, to J.P. Morgan, with 5s of 2/2050 at 4.29%, 5s of 2051 at 4.31% and 5s of 2056 at 4.40%, callable 2/1/2036.
The state also sold $285.47 million of GO refunding bonds, Series A, to BofA Securities, with 5s of 7/2027 at 2.38%, 5s of 2031 at 2.57%, and 5s of 2033 at 2.72%, noncall.
Additionally, Massachusetts sold $255 million of GOs, consolidated loan of 2026, Series B, to BofA Securities, with 5s of 2/2040 at 3.30%, 5s of 2041 at 3.40%, 5s of 2046 at 3.97%, and 5s of 2048 at 4.17%, callable 2/1/2036.
The state (Aa1/AA+/AA+/) also sold $185 million of GOs, consolidated loan of 2026, Series A, to Jefferies, with 5s of 2/2034 at 2.78%, 5s of 2036 at 2.98%, and 5s of 2038 at 3.15%, callable 2/1/2036.
The Bellevue School District No. 405, Washington, (Aaa/AA+//) sold $213.89 million of unlimited tax GO and refunding bonds, to J.P. Morgan Securities, with 5s of 12/2026 at 2.50%, 5s of 2031 at 2.68%, 5s of 2036 at 3.13%, 5s of 2041 at 3.51% and 5s of 2045 at 3.96%, callable 6/1/2036.
ICI reports
The Investment Company Institute Wednesday reported outflows of $300 million for the week ending April 15, following $349 million of outflows the previous week.
Exchange-traded funds saw outflows of $67 million after $1.484 billion of inflows the week prior, per ICI data.
