Primary bond market

If "we get another day of this, that will help the markets continue to trade in a better place," said Jock Wright, an underwriter at Raymond James.

The HOME deal is being priced through the Philadelphia Redevelopment Authority, but carries ratings on par with the city's issuer ratings.

"We're still seeing continued yield pressure out there from the market outlook investors have with the conflict in Iran," said Ajay Thomas, head of public finance at FHN Financial.

The market is navigating volatility driven by geopolitical issues, which has led to trouble for certain deals.

The March/April period is typically a softer period for the muni market, said Jeff Timlin, managing partner and head of municipal bond investing at Sage Advisory.

The Texas city's bond issue will mostly refinance short-term commercial paper into long-term debt and refund some callable Series 2015 bonds.

Chicago postponed the sale of about $292 million of tax-exempt bonds from an $800 million general obligation bond deal.

"There was a certain amount of resilience munis had in the last week, comfortable enough with distribution," said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital Markets. "But the 10-year Treasury backing up behind 4.20%, it proved to be the catalyst for adjusted bid-sides."

This week, "look for deals to get priced to attract demand," said Pat Luby, head of municipal strategy at CreditSights, and Wilson Lees, an analyst at the firm.

A detailed plan for issuing the bonds, which will be backed by an extension of a 1% special sales tax, is expected by May 15.

Many muni participants stayed on the sidelines to start last week due to "the sudden about-face in the Treasury market and uncertainty over how long-lasting the incursion would be," Birch Creek strategists said.

The latest research from The Bond Buyer predicts supply and issuance volume will grow in the months ahead.

"We are still not overly concerned about the effect of the geopolitical concerns on municipals — in our view, the muni market is well insulated," said Barclays strategists.

Market technicals should weaken this month in line with seasonal expectations, with estimated redemption capital of $32 billion compared to estimated supply of $41 billion, said Appleton Partners strategists.

With USTs stable and the "snoozer" of economic data Wednesday morning, the muni market has settled, with muni yields little, said Jeff MacDonald, EVP and head of fixed income strategies at Fiduciary Trust International.

"Once the damage is done, it takes a little longer for it to come back," said Elaine Brennan, executive director of the public finance department at Roosevelt and Cross, of the muni market.

Chicago returns to market March 10 with $800.29 million of general obligation bonds, following bond rating downgrades from Fitch Ratings and KBRA.

Monday saw a more muted tone, but Tuesday munis are playing a little bit of a catch-up to the backup in rates, said Chris Brigati, managing director and CIO at SWBC.

A recent report from The Bond Buyer found that data quality and accuracy was the top concern among AI skeptics in the industry.

Major Texas cities are prepping big bond issues to finance convention center expansions, with Houston hitting the market this week with $1.425 billion of debt.