State of Texas

Municipal bonds were stronger with Treasuries as stock market volatility continued. Trading closed early ahead of the holiday.

While stocks are suffering still and there is a chance of a government shutdown, municipals strengthen yet again to close out the second to last week of the year.

With stocks and equities continuing their sell-off, munis continue to flex their muscles — even with a budget showdown in Washington taking place.

The municipal market held firm on Thursday, as new issuance for the year ground to a near halt amid demand for safe investments.

Fresh off another 25 basis point increase in the fed funds rate, the muni market firmed again, with new issuance pretty much curtailed until the New Year.

The Federal Open Market Committee cut its projection for next year to two rate increases from three.

A lone large deal came into an even stronger municipal bond market, as all eyes are on the Federal Open Market Committee.

A few deals trickled into a stronger market, ahead of Wednesday’s interest rate announcement.

The municipal market appears ready to close the year in a positive manner.

Market participants will focus on reading the tea leaves of the Fed statement Wednesday.