State of Texas

The state of Texas is selling the biggest deal of the week on Tuesday — a $5.4 billion note offering, which is also the biggest short-term sale so far this year.

Top-quality municipal bonds finished stronger on Monday, according to traders, who face a smaller-than-average bond calendar and a $5.4 billion Texas note deal this week.

Top quality municipal bonds were stronger at mid-session, according to traders, ahead of this week’s $4 billion new issue calendar.

The municipal bond market is looking at a smaller than average bond calendar this week, which will be dominated by the short-term note sector.

The state of Texas is riding into the market this week with the biggest short-term deal of the year.

Primary municipal bond market volume is expected to drop to $4 billion in the coming week, as one gigantic note sale is expected to be larger than the entire bond calendar.

Texas enjoyed another strong month of growth in sales tax revenue in July, with the $2.56 billion total running 7.9% ahead of the same month last year.

Municipal bond volume ended the month of July down 20% as refundings plummeted.