State of Washington

Municipal investors should go long as the short end is expensive, strategists say.

Next week's deal will be sold at auction but Washington's state finance team says it is is agnostic about using negotiated or competitive sales to price bonds.

The state sold tax-exempt refunding debt at 2019 rates but won't deliver them until 2021 when the call date of the original bonds is reached.

The municipal market was hit with a ton and a half of new issuance with bond hungry investors waiting with open arms and cash in hand.

It was a big day for the municipal bond market as billions of dollars of new deals hit the screens.

Issuers jump into the market as yields remain near record low levels.

With supply looking up, traders and analysts expect new issues to be well absorbed even if Treasuries correct futher.

Washington's overall economic strength and strong pension funding position outweighed troubles at Boeing as Moody's upgraded the state to Aaa.

It's Moody's first upgrade of the state since 1997.

Just under $7 billion of new-issue supply is on tap in the municipal primary market this week.