Primary bond market

Washington will bring $1.1 billion of GOs in four competitive sales Tuesday, leading a new-issue calendar estimated at $5.439 billion.

Municipal bond mutual fund saw inflows with Refinitiv Lipper reporting investors added $1.040 billion to funds for the week ending Wednesday following $136.174 million of outflows the previous week.

The Investment Company Institute reported investors added $111 million to municipal bond mutual funds in the week ending July 12, after $ 23 million of outflows the previous week.

The back half of July is starting "much like the front half with ongoing UST volatility and municipal supply staying in the forefront," said Kim Olsan, senior vice president of municipal bond trading at FHN Financial.

Long-duration and shorter-coupon munis saw ample demand last week. Investors, believing rates will fall as early as the first part of next year, continue to lock in long-bond yields, Nuveen strategists said.

The IFA and CWA launched a tender offer June 23 that closed Friday. The IFA and Citizens' tender invited holders of some bonds sold in 2014, 2016, and 2018 to tender their bonds as part of the water refunding.  

Bond Buyer 30-day visible supply climbs to $13.42 billion while the new-issue calendar is led by a $1 billion-plus New York City Transitional Finance Authority future tax-secured subordinate deal.

Proceeds from the sale will be used to fund infrastructure projects in the city's $164.8 billion 10-year capital plan.

Municipal bond mutual fund outflows continued as Refinitiv Lipper reported investors pulled $136.174 million from the funds for the week ending Wednesday following $855.719 million of outflows the week prior.

"The bond market finally got the relief from inflation it was hoping for," said Bryce Doty, senior vice president and senior portfolio manager at Sit Investment Associates.