State of Texas

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.

Municipal bond funds and ETFs saw combined inflows of $2.942 billion in the week ended June 17, ICI said.

Municipals finished little changed on Tuesday in light trading activity with the summer seeming to settle in.

Despite this week’s smaller calendar, the recent surge of bond deals could make June the most active month of 2020.

Municipal bonds finished a very active week little changed as participants caught their breath after seeing almost $12 billion of new issues come to market.

Refinitiv Lipper reported $1.7 billion of municipal bond fund inflows. while municipal prices were little changed Thursday.

The market looks forward to Thursday's $3.3 billion note deal from DASNY after handling a sizable calendar Wednesday.

Traders will be looking closely at Wednesday's FOMC meeting and whether the Fed will set target yields for some U.S. Treasury securities.

The new-issue calendar is filling up with deals formerly on the day-to-day slate, however net supply over the summer is expected to total negative $55B, including negative $15B in June, negative $21B in July and negative $19B in August.

In secondary trading municipals ended weaker after a strong employment report.

Sales tax collections fell 13.2% compared to the same month last year, the steepest decline since January 2010

Bond volume was 4.2% lower than it was a year ago but increased from March and April’s low totals.

The primary supply for the holiday-shortened week is projected to dip to just over $4 billion, with a mix of tax-exempt and taxable issuance led by Colorado’s $500 million of certificates of participation.

The primary was up and running Monday with Connecticut’s $850M offering for retail while many Texas issuers were active on the heels of the Fed news that it is open for business for munis.