Primary bond market

The bond sale follows an upgrade by S&P Global Ratings but comes while the city is in the midst of an extreme drought.

The muni new-issue market got a breather after a heavy supply day on Tuesday, according to Franklin Templeton's Jennifer Johnston.

Spirit's ceasing operations after a failed $500 million bailout comes as the airport sector remains resilient despite ongoing geopolitical tensions, with spreads compressing compared to other transportation sectors despite rising fuel costs, Barclays strategists said.

The muni market digested Tuesday's heavy supply in the way analysts expected, H.J. Sims analyst Tim Iltz said.

SWBC's Chris Brigati said he doesn't expect the geopolitical tensions to cause similar losses to muni yields unless oil prices or Treasury yields move significantly higher.

With continued geopolitical tensions and surging oil prices, things could change on a dime, said Sweta Singh, founding partner and portfolio manager at City Different Investments.

In addition to building a new patient tower dedicated to cancer care, the bonds will refund nearly all of Dana-Farber's outstanding debt.

Munis were quiet on Friday after an eventful April.

The bonds are rated A1 by Moody's Ratings, A-plus by S&P Global Ratings and AA by KBRA.

Municipal bond issuance was $47.6 billion in 797 deals for the month, down 7.8% year-over-year but still the third-biggest April in history.

Investors are digesting developments in the Middle East and the Fed's decision not to cut rates, according to FHN Financial's Ajay Thomas.

Guam is diversifying its economy beyond tourism and the military, Gov. Lourdes Leon Guerrero said.

"The market is starting to feel a little bit on the heavy side," said Jamie Iselin, head of municipal fixed income at Neuberger Berman. "The Treasury market has been leaking higher as, I think, people are getting concerned that the conflict in the Middle East is going to [last] longer."

Muni yields increased "in sympathy with the Treasury market," according to Charles Schwab's Cooper Howard.

Fitch Ratings cited Sacramento City Unified School District's fiscal challenges in downgrading its issuer default rating to junk and assigning a negative outlook.

The top two municipal bond insurers wrapped over $7.704 billion in the first quarter of 2026, up 4.9% year-over-year from the $7.342 billion in Q1 2025, according to LSEG data.

All sectors of the muni market posted gains in April, Kim Olsan wrote, exemplifying the market's better-than-expected resilience.

Fitch Ratings on Monday echoed a prior move by Moody's Ratings to revise the state's outlook to negative.

Three universities in the Northeast found a market for their bonds despite larger headwinds for the higher education sector in the region.

"What the market's really trying to figure out is what that Warsh regime is going to mean," said Tom Kozlik of HilltopSecurities. "Folks are really trying to position their mindsets, position their portfolios."