Port Authority of New York & New Jersey

Investors are ready and waiting for another deal-driven week with an estimated $11.8 billion.

The supply surge trend continues as the municipal bond market will see almost $12 billion of new deals hit the screens this week.

The action in the municipal market won't slow down yet, as bond hungry money managers will get a third week in a row of issuance greater than $11 billion.

Although the funding would not directly fund capital projects that are financed by bond issuances, the money would provide a new level of assurance for port authorities that projects which are fundamental to their continued operation will be completed expeditiously.

A lease agreement between Newark, New Jersey, and the Port Authority of New York and New Jersey will help fund debt service for the pipe replacements.

Muni yields were mixed as weak economic data pressured Treasuries and stock prices.

The Port Authority of New York and New Jersey’s increased its long-range capital plan by about $5 billion to $37 billion, while raising tolls, rents and fees.

Federal funding would be reduced to 44% from 49% of the cost of the Gateway project, which had been blocked by the Trump administration.

The bond market had no problems whatsoever digesting the primary and in the process saw yields drop down ever lower, getting ever closer to all-time lows.

The municipal bond market started to see supply come in, as a bunch of deals priced both on the negotiated and competitive sides. Today’s issuance was an appetizer for Wednesday, the main course that looks like it will be the busiest day of the year.