Secondary bond market

Muni participants await a new month with growing issuance, but perhaps not quite enough as issuers are hesitant to add more debt before final word from Washington on infrastructure.

Washington GOs came at tighter spreads than a spring sale in the competitive market while sizable negotiated deals saw bumps in repricings. Refinitiv Lipper reported $1.4 billion of inflows in the 21st consecutive week.

The massive summer reinvestment into municipal bond mutual funds continue and are both sustaining the strength of investor demand and solidifying the technical footing of the market.

The economy continues to recover, with durable goods orders and consumer confidence suggesting strength, but concerns about the Delta variant of COVID-19 and continued supply-chain problems cloud the future outlook.

With municipal yields at exceedingly low absolute levels, the spread tightening between credits also continues.

The pilot program aims to expand its all-to-all Open Trading marketplace by allowing investor clients to select a diversity dealer to intermediate in secondary trading.

The last week of July marks a lighter calendar while August redemptions are huge compared to the expected supply. Investors need to get in line and likely accept lower yields and continued historically low ratios.

Low ratios, low yields and massive demand are leading to a market that is mostly on its own. Refinitiv Lipper reported $1.7 billion of inflows.

The larger new issues and aggressive swings in taxables had investors on guard as triple-A curves were pressured outside 10-years, but the asset class still vastly outperformed UST while ICI reports nearly $3 billion more inflows.

Negotiated deals were repriced to lower yields while competitive deals saw levels coming in through triple-A benchmarks. High-grade benchmarks were little changed.