State of Illinois

Municipal bonds were steady at mid-session as the market eyes a chunky new issue calendar, topped up by the return of Illinois with a multi-billion dollar bond offering on Wednesday.

In what’s easily the largest deal of the year, Illinois is set to come to market with $4.5 billion of general obligation bonds that will help pay down a bill backlog that’s around $15 billion. The lowest-rated U.S. state has momentum going its way after last week’s successful $1.5 billion competitive GO sales -- and Illinois is hoping that success spills over into this week’s negotiated offering.

Municipal bond market participants are returning to work on Monday looking at another chunky new issue calendar, topped by the return of Illinois with a multi-billion dollar bond offering that aims to pay off some of the state’s overdue bills.

The primary muni market is set another busy week with $10 billion in new paper, as one deal from Illinois accounts almost half of the negotiated calendar.

The Illinois borrowing pitch highlights “improving” credit fundamentals and its position as the Midwest “powerhouse.”

Municipal bonds were weaker at mid-session, according to traders, who are looking ahead to the next week's $10 billion new issue slate, which will be dominated by Illinois's $4.5 billion general obligation bond offering.

Municipals are little changed in early activity as the market gets ready to take on the biggest deal of the year — next week’s $4.5 billion Illinois general obligation bond offering.

Illinois' break in budget gridlock and tax hikes help market digest bonds.

Top-shelf municipal bond yields dropped as many as five basis points, as about half of the week’s issuance is flowed into the primary market.

Municipal market participants have their hands full on Tuesday, as roughly half of the week’s issuance is flowing into the primary market.