Primary bond market

"Investors typically start positioning for heavy summer redemptions in summer, so the market typically performs well enough through the first half of June and we do not believe that this year will be any different," Barclays strategists said.

The state's expectation of a deficit in the coming biennium budget was cited in the outlook revision.

It was another "topsy-turvy day" for munis, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital. Munis have been weaker on the front end for a few days, leading to a slight inversion of the curve, starting around the 2028 maturities, Olsan said.

Mohammed Murad, head of credit research for PT Asset Management, said the ceasefire extension "possibly offers less clues as to what a permanent resolution may look like."

Fitch revised the outlook to negative from stable, citing a significant jump in leverage.

It's difficult to tell whether the markets were more affected by spiking oil prices, eroding peace talks between the United States and Iran, or Kevin Warsh's hawkish comments during his confirmation hearing to chair the Federal Reserve, said James Pruskowski, managing director at Hennion & Walsh.

Market support for taxables, particularly those from active issuers, remains firm. Taxables are seeing gains of 1.08% year-to-date, or 50 basis points above a UST index gain, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

The market is experiencing a "calm before a potential storm," said Chris Brigati, managing director and CIO at SWBC.

Lincoln Center's expansion project shows its confidence in its fundraising abilities and future demand but analysts worry about the debt burden.  

"Ceasefire optimism augmented by a liquidity-driven risk-on macro market environment should be neutral for duration and positive for credit spreads," BofA analysts wrote.

The two-week ceasefire with Iran comes to an end Wednesday, though President Donald Trump said Thursday at an event in Las Vegas the war should be ending soon.

Pricing deals on Monday, alerting investors weeks ahead of pricing, and crafting SMA-friendly structures are some of the ways dealers are promoting their deals in a flood of supply.

News of a 10-day ceasefire between Israel and Lebanon may have reassured investors, said James Pruskowski, managing director at Hennion & Walsh, but it didn't cause munis to richen.

Chicago will issue $875 million of second lien water revenue bonds in a deal with a possible tender component, Acting CFO Steven Mahr said.

RBC Capital Markets, Montague DeRose and Acacia Financial Group were new entrants into the top 10, bumping KNN Public Finance, Omnicap Group and Municipal Capital Markets Group.

"Some of it is related to the headlines that we're seeing right now, particularly when we think about yields and what we've seen over the last couple of days," said Tim Iltz, fixed-income credit and market analyst at HJ Sims.

The top underwriters saw some shuffling, with Stifel Nicolaus and Ramirez entering the top 10 and knocking Barclays and Siebert Williams Shank to 11th and 12th, respectively.

The quiet in the muni market is likely due to geopolitical uncertainties, according to Cooper Howard, director of fixed income strategy at Charles Schwab.

The top 10 issuers accounted for $24.148 billion of total issuance, or 19%, in the quarter.

The $1.18 billion revenue bond issue will commence long-term financing for a $5.5 billion expansion program at Austin-Bergstrom International Airport.