Munis were firmer Friday as U.S. Treasuries cheapened and equities ended up.
Muni yields were bumped up to eight basis points, depending on the scale. This pushed the 10-year muni yield below 4%. Meanwhile, UST yields rose three to five basis points.
September managed to have
"We would fade the recent rally in our space and use early month liquidity to raise cash for expected more challenging conditions as we move through the month," the analysts wrote, "when reinvestment capital wanes, tax-related swapping persists, supply reaccelerates, and fund outflows creep higher given September's steep declines in fund NAVs."
Primary to come
Issuance is an estimated $9.68 billion for the week of Oct. 5, with $7.46 billion of negotiated deals on tap and $2.22 billion of competitives, according to LSEG.
California leads the negotiated market with $1.75 billion of general obligation bonds across two tranches, one of five deals next week that top $1 billion.
The competitive market is led by the Maryland Department of Transportation, with $859.47 million of consolidated transportation bonds to be sold across three series.
