Primary bond market

Outflows from municipal bond mutual funds receded as investors pulled $1.090 billion out of funds in the latest week, versus the $3.416 billion of outflows the prior week, according to Refinitiv Lipper data.

Richmond issued $154.1 million in pension obligation bonds in a refunding that terminates swaps, ends a county intercept, and extends the final maturity.

Tollway revenue in the first half of 2022 surpassed pre-pandemic 2019 levels in five of the months.

The Kentucky State Property and Buildings Commission deal will fund capital improvements and public projects across the state.

The Investment Company Institute reported $2.527 billion of outflows from muni bond mutual funds in the week ending Aug. 31 compared to $765 million of outflows the previous week.

The muni market may get a temporary boost of support this week as investors received $18 billion of maturing and called bond proceeds on Sept. 1.

Investors will be greeted Tuesday with a larger new-issue calendar, estimated at $6.087 billion, up from total sales of $5.551 billion in the week of Aug. 29.

The 30-member syndicate plans to begin retail order pricing Wednesday with institutional sales planned for Sept. 8 on the new money and refunding GOs.

The Investment Company Institute reported $755 million of outflows from muni bond mutual funds in the week ending August 24 compared to $320 million of inflows the previous week.

Chicago's O'Hare $1.77 billion offering took center stage this week with the city offering a diverse structure to lure buyers.

Many market players have revised their supply projections downward since rising interest rates have slowed down refunding and taxable volumes and general market volatility has stopped some issuers from participating.

After underperforming USTs last week, "munis have given up their earlier performance advantage for August with both asset classes currently earning virtually the same negative returns," said Jeff Lipton, managing director of credit research at Oppenheimer Inc.

Fed Chair Jerome Powell's message on rates last week combined with seasonal factors to give the market a "weird" vibe this week, one trader said.

The authority maintained positive rating momentum by drawing outlook changes from Moody's on both its water and sewer bonds and from Fitch on its sewer debt.

UBS was the only bank that underwrites municipal bonds on the list of 10 financial companies determined to be boycotting energy businesses under a Texas law aimed at protecting the state's oil and natural gas industry.

Investors will be greeted Monday with decreased supply with the new-issue calendar estimated at $5.882 billion, down from total sales of $6.134 billion in the week of Aug. 22.

Outflows from municipal bond mutual funds continued as investors pulled $1.180 billion out of funds in the latest week, according to Refinitiv Lipper data.

"It was a misguided effort from the beginning to ever use the Bond Commission and any of the work that it does to send a political message to anyone for any reason," said Gov. John Bel Edwards.

The Investment Company Institute reported $230 million of inflows into muni bond mutual funds in the week ending August 17. ETFs see second week of outflows.

Don't expect much new information to come from Jackson Hole this year analysts say, as the data-dependent FOMC will rely on incoming economic numbers in September to decide the proper size rate hike.