Munis were little changed Friday as short-term U.S. Treasuries cheapened and equities ended higher.
Muni yields cheapened up to one basis point, depending on the curve. UST yields cheapened 10 years and in, with the largest losses on the front end.
One of the big stories of the year has been demand, which is supporting the market, especially with robust supply, said Tom Kozlik, managing director and head of public policy and municipal strategy at HilltopSecurities. This has made it easier for deals to clear, and there have not been as many repricings as in past years to get deals done, he said.
However, if the reinvestment cash and/or general demand tail off toward the end of the summer or into the fall, it might not be as easy for primary market issues to get done, Kozlik said.
Primary to come
Issuance is an estimated $7.22 billion for the week of July 13. There are $3.76 billion of negotiated deals on tap and $3.46 million of competitives.
The Aquarion Water Authority leads the negotiated calendar with $2.37 billion of water system revenue bonds, to be priced in five tranches.
The competitive calendar is led by the New York State Thruway Authority, with $2.44 billion of state personal income tax revenue bonds, to be sold in six series.
