Primary bond market

Underwriting spreads rose to $7.11 in the first half of 2024 from $3.70 in the first half of 2023.

The Investment Company Institute reported $839 million of inflows into municipal bond mutual funds for the week ending Aug. 7 after $442 million of outflows the week prior. Exchange-traded funds saw $680 million of inflows after $950 million of inflows the previous week.

"There's an important 'date certain' the market may overreact to, but by and large, [this] week is looking positive given a lighter new- issue calendar," said AllianceBernstein strategists.

Dallas Fort Worth International Airport received a S&P rating upgrade and a positive rating outlook from Moody's ahead of a $750 million bond sale next week.

"After a long-period of muni yields not being that attractive relative to corporates, that's starting to shift," Charles Schwab's Cooper Howard said.

Muni returns so far in August are in the black, with the Bloomberg Municipal Index at 0.53% this month and 1.04% year to date. High-yield continues to outperform with returns at 0.68% in August and 5.99% in 2024.

The past several trading sessions have seen "crazy volatility," said Jennifer Johnston, director of research of municipal bonds at Franklin Templeton.

Thursday's pricing of senior revenue bonds comes after Fitch Ratings upgraded the airport's subordinate debt.

Recent events have been a "roundtrip" for rates, starting with the sentiment shifting from slowing inflation to a softening labor market, said James Pruskowski, chief investment officer at 16Rock Asset Management.

When Wisconsin priced $253.755 million of GO refunding bonds on July 23, it was the state's second forward delivery deal in recent months.