Secondary bond market

It was a big day for the municipal bond market as billions of dollars of new deals hit the screens.

Issuers jump into the market as yields remain near record low levels.

Fed still divided, but 25 basis point cut is a good bet.

With supply looking up, traders and analysts expect new issues to be well absorbed even if Treasuries correct futher.

The Chicago Public Schools also came to market with a $349 million GO deal.

“I think there’s enough demand for Illinois bonds," said Vikram Rai, head of Citi's municipal strategy group.

California's $2.4 billion GO deal was priced for retail investors on Wednesday.

A pre-marketing scale was released on California's $2.3 billion GO deal.

Market observers says Lori Lightfoot should go light on one-time maneuvers, avoid fiscal gimmicks, and move the city toward structural balance.

The market will see $7.6 billion of bonds plus a $1 billion note sale coming up in a holiday-shortened week.