Primary bond market

John Hallacy, founder of John Hallacy Consulting LLC, talks with Chip Barnett about the pandemic’s lingering credit impacts on state finances in a wide-ranging discussion of the many issues affecting the municipal market today. (17 minutes)

The Federal Reserve must be prepared to move if inflation continues to surprise to the upside, according to one Fed president, while another again stated a desire for the Fed to pull back on its accommodation.

The short end of the yield curve faced pressure from a cheaper UST five-year. As the flattening trend in UST takes hold, demand for duration will also spill over into the tax-exempt space, with long-dated munis continuing to outperform, analysts say.

Refinitiv Lipper's $1.85 billion of inflows say investors aren't going anywhere.

The Investment Company Institute on Wednesday reported $2.533 billion of inflows into municipal bond mutual funds, the highest since February.

If the market holds, the state could also receive the lowest recorded true interest cost in its history of general obligation bond sales.

Tuesday’s data may not be indicative of where the economy is going and will likely be written off by the Federal Open Market Committee at its meeting, analysts say.

Court approval for the settlement that resolves claims against the state for its role in the poisoning of Flint residents looms this summer.

Most analysts expect the Federal Open Market Committee will alter its Summary of Economic Projections and perhaps begin to talk about tapering, without offering clues when they'll begin cutting back on asset purchases.

Now the fifth largest bank in the U.S., PNC will expand its banking and capital markets activities across the Southwest and Western regions.

Yields on top-quality munis were flat on the AAA scales Friday; yields were seven to nine basis points lower on the week.

Trading showed firmer prints, with Georgia general obligation bonds, Maryland GOs and Los Angeles Department of Water and Power bonds trading up.

Recovering air passenger numbers were one factor Fitch Ratings cited in revising the Port of Seattle's outlook to stable from negative.

The Investment Company Institute reported $1.089 billion of inflows into municipal bond mutual funds, marking the 13th consecutive week.

The U.S. Treasury 10-year dipped to its lowest yield since March while municipal investors poured money into new deals and secondary trading helped push benchmarks even lower.

The Wayne County Airport Authority is selling $163 million to finance projects.

The market idled Monday while investors prepare for a $12 billion new-issue onslaught that brings diversity of credits that will help direct benchmark yields. Continued fund flows are needed to sustain current yields.

Muni prices were firm Friday after the employment report showed nonfarm payrolls rose 559,000 in May as the jobless rate fell to 5.8%.

Raymond James is senior manager for the sale, which will feature $82 million of Series B tax-exempt and $17 million of Series A federally taxable bonds.

As most participants await Friday's jobs report, the municipal market Thursday sustained a firm tone as rates remained on a gradual path of decline.