Primary bond market

The airport, also selling $412.8 million of new money, will join a bevy of issuers who have deployed a tender offer in the hope of realizing refunding savings.

Investors added $571.5 million from municipal bond mutual funds in the week ended Wednesday, following $224.6 million of outflows the prior week, according to LSEG Lipper data.

Longer-term munis have become more attractive, said Cooper Howard, a fixed income strategist at Charles Schwab.

An academic paper presented at the Brookings Institute's annual conference found that future wildfire risks are already having economically significant impacts on financial markets, municipal borrowing costs and vulnerable communities.

Why more issuers are opting for the tender offer. San Francisco PUC's Nikolai Sklaroff lays it out for Bond Buyer Senior Infrastructure Reporter Caitlin Devitt.

There is a buyer base that is a little bit "skeptical" of longer maturities, but it's more of a retail response, said Adam Congdon, a director at Payden & Rygel.

The $719.5 million of general airport revenue bonds will help finance an ongoing multi-billion-dollar capital improvement plan.

The primary market saw "decent subscriptions" last week, but the entire primary calendar came at "healthy concessions to where evals had been marked on existing bonds," Birch Creek strategists said.

A two-year process and a new financing vehicle were needed for the New York Power Authority to price the first prepay energy deal in the state. 

The week was a long-awaited reckoning with record supply, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

Munis are "under pressure as elevated primary supply collides with lackluster seasonal reinvestment flows, leaving dealers heavy and buyers selective," said James Pruskowski, an investor and market strategist.

As the market continues to contend with the surge in issuance, investors still have a significant amount of cash that can be put to work, said Jeremy Holtz, a portfolio manager at Income Research + Management.

As always, economists had disparate interpretations of the consumer price index, with none expecting a July rate cut. And tariff questions remain unanswered.

"The muni market seemed to ignore Treasuries [last] week, marching to its own beat," said Birch Creek strategists.

New York issuers lead a $9 billion slate.

The comprehensive federal tax bill President Trump signed July 4 is credit negative for universities, Moody's Ratings said.

The market has seen some "weirdness" in the muni curve, said Craig Brandon, co-head of muni investments at Morgan Stanley Investment Management.

"Municipal outperformance against taxable sectors has moved short-term ratios on or through their 252-day moving averages, while intermediate and long maturities are holding at or above average ranges," said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

Michigan's Great Lakes Water Authority went to market in June with roughly a billion dollars of bonds, part of a complex transaction that included a tender.

"Market volatility is likely to pick up, but the latest development does not constitute an escalation in the trade war," according to UBS strategists.