Munis were cheaper on Tuesday, as U.S. Treasuries weakened slightly and equities ended lower ahead of the
Muni yields were cut by three to six basis points, depending on the scale. UST yields cheapened by one to two basis points. The 10-year UST hit 5% for the second day in a row.
The municipal market is completely a buyer's market right now, said Kim Olsan, portfolio manager at NewSquare Capital. She pointed to the $1.7 billion deal from the New Jersey Transportation Trust Fund Authority, where the 15-year maturities reached up to a 9% tax-equivalent yield.
The higher yields are not driven by municipal credit value, Olsan said, but by macroeconomic factors, like inflation.
"Assuming that municipal issuers stay diligent with finances and don't get into heavy budget shortfalls, I think it's a really good time to be involved in the market," Olsan said. "I wish I had more cash to put to work."
New-issue market
In the primary market Tuesday, Wells Fargo priced for the New Jersey Transportation Trust Fund Authority (A1/A/A/A+/) $1.7 billion of transportation program bonds, Series AA, with 5s of 6/2035 at 3.95%, 5s of 2036 at 4.06%, 5s of 2041 at 4.73%, 5.25s of 2046 at 4.99%, 5s of 2051 at 5.20% and 5s of 2056 at 5.28%, callable 12/2036.
Jefferies priced for the Dormitory Authority of the State of New York (A3/A-/A-/) $750 million of Northwell Health Obligated Group revenue bonds, Series 2026A, with 5s of 11/2032 at 3.91%, 5s of 2036 at 4.31%, 5s of 2056 at 5.37% and 5.75s of 2056 at 5.25%, callable 11/2036.
Goldman Sachs priced for the California Community Choice Financing Authority (A2///) $659.24 million of clean energy project green revenue bonds, Series 2026H. The first tranche, $576.89 million of Series 2026H-1 term rate bonds, saw 5s of 9/2027 at 3.80%, 5s of 2031 at 4.16% and 5s of 2036 at 4.80%, callable 6/2036.
Details for the second tranche, $82.35 million of Series 2026H-2 SOFR index rate bonds, were not available.
BofA Securities priced for Hillsborough County, Florida, (Aaa/AAA/AAA/), $628.43 million of utility revenue bonds, Series 2026A, with 5s of 8/2031 at 3.25%, 5s of 2036 at 3.80%, 5.25s of 2041 at 4.40%, 5.25s of 4046 at 4.76%, 5.25s of 2051 at 5.01%, 5s of 2056 at 5.10% and 5.5s of 2056 at 5.01%, callable 8/2036.
In the competitive market, Manchester, New Hampshire, (Aa3/AA//) sold $244.86 million of general obligation public improvement bonds, Series 2026B, to Jefferies, with 5s of 10/2028 at 2.98%, 5s of 2031 at 3.33%, 5s of 2036 at 3.96%, 5s of 2041 at 4.55%, 5s of 2046 at 4.84% and 5s of 2051 at 5.05%, callable 10/2036.
