Puerto Rico Aqueduct & Sewer Authority

Municipal bonds ended the week unchanged for the sixth consecutive trading session as inflows surged as more than $7 billion is headed to market next week.

The governor and the legislature are at odds on how to make the increases, which could affect more than half of the workforce.

The authority succeeded in selling unrated bonds to take out CCC-rated bonds.

Preliminary yields in the offering memorandum show spreads of 112 to 169 basis points over triple-A benchmarks, substantially lower than spreads seen in a successful speculative grade PRASA refunding in December.

While the truckers returned to work Thursday night, their union said board interference could lead to a renewed strike.

The $10.1 billion General Fund focuses on operational improvements, Medicaid reform, and enhancing tax compliance.

Economists in Puerto Rico panned the proposal to raise the rate to $9 per hour saying it would hurt businesses.

The board set a noon Thursday deadline for repeal of Act 7, otherwise it will seek a legal remedy.

Biden called on Congress to amend the Social Security Act to include Puerto Rican residents for benefits. The Oversight Board has said the benefits would lead to $1 billion more per year to island residents.

The board plans to pick an operator for PREPA's electrical generation in second half of this year.

The Board will address several of Puerto Rico's authorities' fiscal plans and will have an update about PREPA's transition of its systems to the private operator, LUMA Energy.

Non-farm employment went up for three consecutive months.

The authority appears ready to take advantage of market conditions following a successful December refunding.

Three of seven board members will be from the original group.

Some economists say the changes, such as a rise in minimum wage, would be a negative for the local economy.

The aid is in response to Hurricanes Irma and Maria, which hit the island more than three years ago.

The largest tranche of the deal, $706 million with a 5% coupon in 2047, yielded 4.15%, a 275 basis point spread over triple-A paper.

Yield-starved investors will help the deal get done, despite credit risks and the island's bankruptcy overhang.

A heavier calendar still will not fulfill the $20 billion-plus of December redemptions. Muni/UST 10-year ratios fell to 74% as the UST 10-year came closer to 1.00%.

The governor-elect also plans to appoint Manuel Cidre as secretary of economic development and commerce.