Another subpar week of primary supply probably won’t generate much excitement from the municipal bond market. But it should continue to do its part to hold muni yields close to their current rock-bottom levels across the curve and to keep muni ratios to Treasuries relatively rich.
The latest industry estimates have muni bonds expected to be sold next week totaling $3.91 billion versus a revised $4.38 billion this past week. That breaks down into $893.1 million in competitive offerings that are scheduled for sale, compared with a revised $1.44 billion last week. In addition, $3.02 billion in negotiated deals are slated for sale, versus a revised $2.94 billion last week.