State of Washington

The municipal market was steady Monday as the investors gear up for three separate billion-dollar deals heading to market from California, New York, and Connecticut issuers.

Even if there was some hesitation in the past few sessions to accept lower municipal yields given rich valuations, municipals continue grinding lower. One- and two-year AAA yields hit record lows of 0.06% and 0.08%, respectively.

The January employment report headline number disappointed while stimulus news lifted equities and U.S. Treasuries rose on both counts. Municipals ignored those moves ahead of another week of less-than-ample supply.

Mike Pellicciotti, a Democratic state representative, unseated incumbent Duane Davidson. Both say they are working on a smooth transition.

Municipals weakened as supply surged into the market, with AAA yields up by as much two basis points on longer-dated maturities.

Long-term munis strengthened as investors bank on recoveries and navigate an uncertain credit landscape.

Financial challenges posed by the COVID-19 pandemic have not slowed long-term capital initiatives at public power firms.

Washington State pulled a note deal after a glitch resulted in two-thirds of bidders not seeing a couponing instruction.

The municipal market saw a plethora of deals come in while secondary market trading showed some weakness on AAA benchmarks.

The municipal primary saw billions of new deals hit the market, but the final yields on the biggest deal of the day result in something that the market hadn’t seen in a while — a repricing to higher yields.