Public finance

"Even after this week's rally, absolute yields look attractive in the context of the trading range over the past three years, May's underperformance versus taxable fixed-income, and our longer-term projections for lower rates this year," J.P. Morgan strategists said.

The spending plan for the fiscal year that begins July 1 contains no tax increases or new fees and puts off finding a recurring solution for a structural budget gap.

Oversight Board Executive Director Robert Mujica said the only recently released fiscal 2022 ACFR showed revenues and expenditures continue to be imbalanced.

Household ownership of munis — which includes direct ownership of individual bonds in brokerage accounts, fee-based advisory accounts and SMAs — rose to $1.779 trillion, up 0.3% from Q4 2023 and from 5.6% in Q1 2023.

Judges say PREPA bondholders have a lien on net revenues collected post-bankruptcy.

The top five bond financings have an average dollar volume of more than $1.9 billion.

"It is important to remember that as long as the Fed's next move is to lower policy rates, bonds will do well," said Jack McIntyre, portfolio manager at Brandywine Global. "The employment market is in better balance, which is very important for the Fed — even more than inflation."

Driven by ongoing capital expenditure funding and current refunding opportunities, airport issuance is estimated at $21 billion in 2024, with a slew of from June through September and more planned in December, according to Ramirez.

Milwaukee Public Schools is months late in submitting the annual financial audit reports amid turmoil that has seen its superintendent and comptroller depart.

"We will remain cautious until CPI and the FOMC are in the rear-view mirror and as long as these don't catalyze a sell-off (since that would trigger outflows) or catalyze a sharp rally (as municipals lag rates during a sharp rally and ratios can increase optically) ... " said Vikram Rai, head of municipal markets strategy at Wells Fargo.

The top five bond financings have an average dollar volume of more than $1.2 billion.

Darren Olson of the American Society of Civil Engineers joins to discuss the importance of resilient infrastructure and the impact of federal funding on America's future.

With no change in rates expected, analysts are interested in the dot plot and Fed Chair Jerome Powell's press conference.

Controversy over where to build a new jail has delayed further issuance of $260 million of voter-approved bonds after an initial $45 million sale.

Even after paring down the capital plan, the MTA will need to issue debt, and sooner than planned. It will be issued under the MTA's transportation revenue credit rather than its congestion pricing credit, so near-term debt service costs will be higher, CEO Janno Lieber said.

Munis should see better performance this week as issuance falls to $5.2 billion this week and cash still needs to be reinvested, said Jason Wong, vice president of Municipals at AmeriVet Securities.

The Water and Power Authority got good financial news from the U.S. Federal Emergency Management Agency but bad financial news from a federal court in Puerto Rico.

The ratings agency cited growing enplanement counts, expectations of resilience during future economic downturns, and strong management for its upgrade to AA from AA-minus.

The Canadian finance official says local governments in the U.S. and Canada face similar challenges but also can learn from each other.

USTs spiked 17 basis points on the short end and 15 to 12 10-years and out following the release, while triple-A curves saw yields rise two to five basis points, depending on the yield curve, in a more muted and typical reaction for the asset class.