State of Texas

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.

Uncertainty and volatility have caused a bifurcated market when it comes to credit, and widespread disparity between high-quality and high-yield is complicating matters for issuers.

The U.S. Supreme Court is expected to hear oral arguments this fall in California v. Texas.

Texas suffered its worst sales tax plunge in 10 years as the pandemic began to grip the state's economy.

April finished with $23.7 billion of issuance, a 15% decline from the $27.9 billion in April 2019. Volatility from the pandemic has caused erratic swings in benchmark yields, resulting in the lowest muni volume total in the month since 2011.

Pessimism about the economic situation in the United States continues to affect the way consumers view the economy and their financial position.

Several of the Lone Star State's manufacturing indexes dropped to record lows in April, a Dallas Fed survey showed.

Sales taxes are a pillar of the Texas state budget, and the usually stable revenue source has taken a hit from the COVID-19 pandemic.