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While the report offers many positives for states, headwinds loom, according to investment management firm Conning.

Daily report for May 19, 2022

Illinois' spread penalties widened sharply from the state's last deal, but they landed in lockstep with current trading levels as the state saw healthy demand for its $1.6 billion GO issue.

Investors pulled $7.270 billion from muni bond mutual funds in the week ending May 11, per ICI data, while exchange-traded funds saw $1.756 billion of inflows, the fourth week of record inflows.

Issuer fears that ESG regulation will lead to disclosure trouble are overblown, the SEC’s muni office chief said Wednesday.

SWS has launched a specialty higher education sector group that will be led by Julia Harris from the firm's Chicago office.

If the Federal Reserve raises its key interest rate somewhat above what it thinks is a “neutral” level for the economy and stops there, that should help bring inflation down from current elevated levels, Chicago Fed President Charles Evans said.

The main bond classes appear to clear the two-thirds majority needed for a court endorsement.

Moody’s Investors Service raised the city's rating, noting noted a trend of strong finances, a diverse economy and a willingness to tackle pension issues.

The U.S. economy won’t be able to avoid a bout of stagflation and markets have yet to tune into the risk of a significant slowdown in growth, said Mohamed El-Erian.

Daily report for May 18, 2022

NOTICE IS HEREBY GIVEN to the holders of the bonds set forth below (the “Refunded Bonds”) of the defeasance of such bonds. In accordance with the General Bond Resolution of the South Central Connecticut Regional Water Authority (the “Authority”), there have been deposited with the Trustee on May 3, 2022, monies, which have been invested by U.S. Bank National Association in direct obligations of the United States of America, the principal of and the interest on which when due will provide moneys which shall be sufficient to pay (i) interest on the Refunded Bonds due and to become due on or prior to the Redemption Dates or maturity date, and (ii) the principal or the Redemption Price of the Refunded Bonds and accordingly the Refunded Bonds are deemed to be paid in accordance with Section 1101.B of the General Bond Resolution.

NOTICE IS HEREBY GIVEN that, pursuant to the applicable provisions of the governing documents of the above captioned bonds (the "Bonds"), $236,185,000 principal amount of the Bonds will be redeemed on June 1, 2022, at a Redemption Price of 100.00%, together with interest accrued to June 1, 2022 interest on the Bonds shall cease to accrue.

St. Louis County will take competitive bids on the $114 million issue Wednesday, amid concerns about rising construction costs for the project.

The authority currently projects $169 million in losses over three months, though FAFAA says it won't be that bad.

On the buy-side, weakness, outflows, supply issues, and poor liquidity are making life challenging for municipal bond investors. The same could be said for issuers.

Coordinated national efforts to share firefighters and other resources could be stretched thin this year as drought hammers the West.

Federal Reserve Bank of St. Louis President James Bullard said he supports the central bank’s plan to raise interest rates in half-percentage-point steps at coming meetings.

Federal Reserve Chair Jerome Powell said no one should doubt the U.S. central bank’s resolve to curb the highest inflation in decades, including pushing rates into restrictive territory if needed.

While only 12% to 15% of municipal bond trading volume is performed electronically, various market participants say the time to embrace new technologies is now.