State of California

Municipal bond investors are eagerly awaiting the biggest supply week of the year, as strong technicals will continue for the foreseeable future.

The wait is over. After seven months without seeing one week of double digit issuance, municipal bond investors will finally get a supply surge.

Municipal and Treasury markets rallied one day after the Fed cut interest rates by 25 basis points and after President Trump declared more tariffs on China — all of which caused the 10-year Treasury to dip below 1.90%.

The state auditor raised questions about how the state controller reported California's OPEB liability in the report, which took 11 months to release.

The municipal market got what it expected, when the FOMC announced its decision to lower rates.

Coming off the biggest month of the year, volume dipped in July to the second slowest pace of 2019.

The municipal market saw a a flurry of deals come and go on the day before the Federal Reserve will presumably cut interest rates.

All markets and investors are waiting to see how much the Fed will cut interest rates on Wednesday. Will it be 25 basis points or 50?

As the FOMC gets set to meet on interest rates, municipal bond buyers will see supply heading in from the Golden State.

As July winds down, muni issuance will be muffled thanks to the FOMC's monetary policy meeting.