Buy side

Municipal investors can expect just shy of $10 billion of new issues from which to choose the first full week of October and the fourth quarter, led by a $1.5 billion taxable general obligation bond offering from New York City. Connecticut is bringing $935 million of general obligation bonds.

Municipal bond mutual funds saw inflows of $1.879 billion in the latest week, marking the 14th consecutive week of inflows and the highest level of 2024, per LSEG data, reiterating the strong investor support for this market.

This surge in demand "is no coincidence — it's the result of weeks of relentless inflows, further amplified by the Federal Reserve's recent rate cut," said 16Rock Asset Management CIO James Pruskowski.

The biggest theme within the muni market — and what is responsible for its performance — is the amount of cash on the sidelines, with $6-plus trillion in money market funds and close to $2.5 trillion in certificates of deposits, said Julio Bonilla, a fixed-income portfolio manager at Schroders.

Through the integration, Investortool's clients can calculate analytics based on predictive trade levels, filter the live market based on "what's rich or what's cheap" compared to the predictive price and power automation, said James Morris, senior vice president at Investortools.

With supply ballooning, reinvestment dollars at lows of the year, J.P. Morgan's Peter DeGroot argues the next few weeks could offer the best opportunity to buy bonds of the year – and possibly the rate cycle. DeGroot talks about this, plus potential impacts of shifting investor behavior on market liquidity, and what the upcoming election might mean for tax policy and the muni market. Lynne Funk hosts.

Disruption was on the minds of those gathered in Chicago last week for MuniTech, a conference billed as a magnet for the "tech-forward" in public finance.

"As September draws to a close, some dynamics may prevail in October but others could undergo a shift," said NewSquare Capital's Kim Olsan. "One aspect that will continue is the level of supply coming to market." 

September volume came in over $44 billion leading volume year-to-date to hit more than $380 billion, just shy of 2023's full-year total issuance.

Municipal triple-A yield curves closed out the week with few changes, valuations were little changed, but at attractive levels, and the forward calendar climbs to more than $10 billion to open the fourth quarter.