Primary bond market

"I think this deal is kind of like football in the pre-season," says County Comptroller Kevin Hardwick. "We're looking at this new issue as a run-up to next year — the big event — when we hope to be bonding for our new stadium for the Buffalo Bills."

Massachusetts had temporarily delayed the $2.7 billion sale as state lawmakers debated additional funding for the state's unemployment trust fund.

Pressure on the short end of the muni curve is being exacerbated by a 3.24% two-year Treasury note, from a correction to floating rate notes and dealer positions.

The debt issued through conduit Gallatin County, Montana, benefits an aerial firefighting company that went public through a SPAC weeks after the bonds sold.

The Investment Company Institute reported investors poured in $1.589 billion into muni bond mutual funds in the week ending August 3, the highest level since November.

Several large new issues priced. Municipal yields were little changed, U.S. Treasuries were weaker on the short end and stocks ended in the red ahead of the much-anticipated July inflation figure.

Weekly supply is holding below $5 billion, reinvestment needs are still in effect from large redemptions and fund flows are leaning more positive, noted FHN Financial's Kim Olsan.

Moody's revised Cook County, Illinois' outlook to positive ahead of its mix of sales tax-backed and general obligation bond deals.

Investors will be greeted Monday with an increase in supply with the new-issue calendar estimated at $5.941 billion, up from total sales of $1.700 billion.

Investors poured $1.094 billion into municipal bond mutual funds in the latest week, versus the $236.491 million of inflows the week prior. It marks only the second time this year inflows eclipsed $1 billion.