Primary bond market

"The muni market is no different than others, where fear and greed drive the trends," said Peter Delahunt, StoneX's managing director.

The transportation revenue bond sale comes as legislative work on a new budget package is ramping up with the GOP expected to craft its own operating and capital spending plans.

Triple-A benchmarks have fallen five to 10 basis points, depending on the scale.

Investors will be greeted Monday with a new-issue calendar estimated at $6.041 billion.

A $3.52 billion Texas Natural Gas Securitization Finance Corp. deal includes a make-whole redemption over three years to call bonds if the state appropriates funds to pay them off.

Outflows continued as Refinitiv Lipper reported $307.815 million was pulled from municipal bond mutual funds in the week that ended Wednesday after $905.030 million of outflows the week prior.

Outflows lessened, with the Investment Company Institute reporting investors pulled $344 million from mutual funds in the week ending March 1, after $1.148 billion of outflows the previous week.

The two-year UST is now a full point above the 10-year UST, something that hasn't happened since 1981.

Federal Reserve Chair Jerome Powell will testify beore Congress twice this week and Friday brings the latest employment report.

The "week's substantial primary market calendar of $10-plus billion will be a big test for where market demand stands," said Tom Kozlik, head of public policy and municipal strategy at HilltopSecurities Inc.