Primary bond market

Wednesday saw the third consecutive day of falling muni yields, suggesting the market is recovering from last week's selloff. The market is well-positioned for "a strong snapback," according to James Pruskowski, managing director at Hennion & Walsh Asset Management.

Moody's assigned its first-ever rating to munis backed by bitcoin ahead of a deal in New Hampshire. 

Issuance was $50.081 billion in 697 issues, up 17.3% year-over-year from $42.709 billion across 726 transactions.

Moody's Ratings upgraded Alum Rock Union Elementary School District on proactive management actions in the face of enrollment and fiscal challenges.

Many investors are waiting to see if the pattern of falling yields continues, according to Chris Brigati, managing director and CIO at SWBC.

The tax could result in an increase in demand for the state's municipal bonds.

This strength comes after another "challenging week" for the muni market, which continued to deal with ongoing macroeconomic uncertainty and somewhat heavy supply, said Daryl Clements, a muni portfolio manager at AllianceBernstein.

Children's hospital achieves moderate to low-risk yield on junk-rated bonds boosted by insurer.

Triple-A Harvard's latest deal provides, through its offering documents, a snapshot of the state of the Trump administration's campaign against the school.

Three negative outlooks and choppy market conditions weren't ideal conditions for a massive $2.6 billion bond issuance, which was trimmed to $2.3 billion.

Ending a challenging week with ongoing geopolitical tensions and rising oil prices, muni yields were cut one to four basis points, depending on the scale.

The new state income tax is expected to make Washington munis, which are exempt, more attractive for high-earning residents.

Investors pulled $600 million from municipal bond mutual funds in the week ended Wednesday, according to LSEG.

The East San Francisco Bay area water and wastewater utility will price into a market that has seen increased revenue bond issuance.

Despite headwinds in the higher education sector, Louisiana State has enjoyed rising undergraduate enrollment.

"Rates, not fundamentals, continue to drive benchmark yields higher, leaving munis on track for their fourth-worst monthly performance in 15 years," said James Pruskowski, managing director at Hennion & Walsh.

"You would think global instability leads to flight for quality, but you also have the inflationary pressures that come with higher oil prices. I would say the inflationary pressures have been winning, and that's why you're seeing Treasury and muni rates move higher," said Keith Richard, head of public finance at Siebert Williams Shank.

The AA-minus-rated bonds come to market as the hospital sector continues to navigate through rising expenses and other challenges.

"We are in interesting times as the market must now balance these robust technicals against a backdrop of geopolitical tension in the Middle East and the nomination of Kevin Warsh, whose hawkish reputation is already being weighed by participants," said Jason Wong, vice president of municipals at AmeriVet Securities.

While it's unclear how long the war in the Middle East will drag on, once President Donald Trump announces an end to the war, things could change "on a dime," as happened with the tariff-induced volatility in April 2025, said Peter Block, managing director of credit strategy at Ramirez.