State of Texas

Vice President/Senior Analyst, Moody’s Investors Service

The numbers were not as bad as first forecast, with sales tax revenues, which account for 59% of the budget, inching up.

As the long Labor Day holiday beckoned, munis remained mostly steady in quiet trading. Cal trades up.

Municipal bond volume kept rolling in August, producing the second-highest volume for the month in the past decade, marking the third consecutive month this year of greater-than $40 billion.

Municipal bonds ended unchanged on Monday ahead of this week $8 billion of new issuance.

The muni market steadied Wednesday as a strong dose of supply hit the screens.

Municipals were slightly weaker on Tuesday as investors take stock of inventories and exceedingly low yields for a market that might be ripe for a correction.

Municipal investors are somewhat tepid on current low rates Monday ahead of the week's $`11.5 billion of new supply.

Municipals continued to correct, with yields on the AAA scales rising by as much as three basis points as signs point to investor pullback from current low yields.

The competitive sale is scheduled for Aug. 19 with Stifel Nicolaus as financial advisor.

With help from federal stimulus funding and online sales, Texas sales tax revenues turned positive in July. However, other tax revenues have fallen significantly.

Municipal bonds were little changed on Monday ahead of this week's new-issue calendar.

Municipal bonds finished out the month on a strong note, with yields dropping by as much as two basis points on Friday.

Municipals were little changed as all eyes focused on the primary.

The lack of a significant new-issue calendar is encouraging some investors to purchase ahead of the first of the month, but others are putting buying off until the arrival of Aug. 1 redemptions.

Municipals finished mostly stronger on Thursday as retail investor confidence remained high for the 11th straight week. Taxable 'social' bonds for nonprofits are making their mark in the municipal space.

Municipals were stronger on the short- and intermediate ends as long maturities held firm in quiet trading on Wednesday.

Texas faces a shortfall of $4.8 billion at the end of fiscal year 2021, Comptroller Glenn Hegar reported.

Texas reported June revenues improved from May, but still down year-over-year.

The municipal market saw a $40 billion-plus month for the second time this year, as issuers flooded the market with bond sales during the month of June.