Primary bond market

"A lot of retail investors are still very distracted by the stock market," said Pat Luby, head of municipal strategy at CreditSights.

S&P lifted Graham's general obligation bond and certificates of obligation rating to A from BBB due to the city's earlier-than-projected financial turnaround.

The status of the war in Iran is confusing, Hennion & Walsh's James Pruskowski said, but high absolute rates are giving the muni market a strong start to June.

The quartet of accelerated deals is among at least 25 additional unique credits above $100 billion coming to market, a major contributor to the surging supply of $18 billion to $20 billion this week.

Considering the "huge calendar this week," NewSquare Capital's Kim Olsan said, "if we can hold steady, that's probably a good result."

Primary market muni supply year-to-date is at $235.028 billion, up 4.3% year-over-year, according to LSEG.

Maryland drops Moodys a year after the ratings agency downgraded its credit as the state preps for a major bond sale this week.

This week will see continued stability, given the recent bumps on deals in the primary market last week and the lack of negative headlines about the war with Iran, said Elaine Brennan, executive director of the public finance department at Roosevelt & Cross.

The New York Convention Center Development Corporation is coming to market for the first time in more than a year, with bonds backed by a hotel surcharge.

The muni market is experiencing "some short-term optimism," said Hilltop Securities' Tom Kozlik, but there are still "pressures that could potentially be with us for not just weeks, but months."

Markets grew stronger upon news of the extended ceasfire in Iran, but the reaction was less pronounced than Tuesday's rally.

June redemptions are $44.4 billion. July and August will see $37.7 billion and $38.4 billion returned, respectively, said Pat Luby, head of municipal strategy at CreditSights.

The Kentucky State Property and Building Commission will be the issuer for the $885.5 million of bonds.

The muni market's gains are likely a continuation of Tuesday, Charles Schwab's Cooper Howard said, but markets could turn sour after personal consumption expenditures data is released Thursday.

Munis and USTs both received a boost from news of a possible peace deal with Iran.

The market has seen a trend of "happy endings to each week, disappointing Mondays," according to James Pruskowski, managing director at Hennion & Walsh.

"We're going to have some weak days, we're going to have some stronger days, maybe they wash out against each other," said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

Proposed FEMA reforms could further increase financial strain for state and local governments after natural disasters.

Ajay Thomas, head of public finance at FHN Financial, said the market has been "totally driven" by headlines out of the Middle East this week.

Flagstar — one of the largest regional banks, operating around 340 locations across nine states — recently hired four senior executives.