The Treasury Department said it will auction $23 billion 10-year notes on August 10.
The notes are dated August 15 and are due August 15, 2026.
Moody's Ratings cited low liquidity as a reason for the downgrade.
Federal threats to grants and the tax exemption continue to push universities to the bond market. This week, it was MIT, Yale, and Suffolk University's turn.
The recent firmness in the market has been "much appreciated," said Shannon Rinehart, senior portfolio manager of municipal debt at Columbia Threadneedle Investments.
The Oversight Board will continue to "prepare for a more dire outcome but continue to hope for the best," said Chairman Arthur Gonzalez.
The Commercial Metals Company and the West Virginia Economic Development Authority took a chance by coming to market with a tax-exempt $150 million junk-rated private activity bond sale financing a scrap metal steel mill during uncertain times for the construction industry.
The bonds have not reacted to the most recent negative ratings actions, although one buysider said that may soon change.