Secondary bond market

The $11-billion-plus calendar is the largest in eight weeks and includes two large high-grade issuers which may entice buyers into the market.

Despite rising U.S. Treasuries, municipals are making gains and are in the black to start July.

The Investment Company Institute reported investors pulled $1.372 billion from muni bond mutual funds in the week ending June 29.

As investors shift the focus from inflation to recession concerns, fixed income markets, including munis, may regain some of the year's losses.

With the Fourth of July holiday shortening the week, investors will see a paltry $2.861 billion of new issues to kick off the second half of 2022.

Investors pulled more from municipal bond mutual funds, with Refinitiv Lipper reporting $1.3 billion of outflows, down from the $1.6 billion the week prior and bringing the total to $47 billion year-to-date.

The Investment Company Institute reported investors pulled $4.590 billion from muni bond mutual funds in the week ending June 22, down from $6.243 billion of outflows in the previous week.

A new-issue supply-focused buy-side had their sights on the $8 billion-plus flowing into the primary market this week, while municipal traders remained cautious, keeping an eye on bid-wanted lists in the secondary market.

A bearish market sentiment and elevated muni to UST ratios often represent a buy signal. Taxable equivalent yields are compelling for buy-and-hold investors, analysts say.

Municipals head into the final week of the first half of 2022 on more stable footing, but a cautious tone hangs over the market.

Refinitiv Lipper reported smaller outflows at $1.6 billion, down from the $5.6 billion the week prior. It brings the total outflows to $45.7 billion year-to-date.

The Investment Company Institute reported investors pulled $6.243 billion from muni bond mutual funds in the week ending June 15.

The lighter calendar may help ease the imbalance between demand and supply, as selling pressure in the secondary has weighed significantly on the market tone.

Investors will be greeted Monday about $6.4 billion of new issuance led by triple-A Georgia general obligation bonds and Los Angeles notes.

It's the third time this month that the SEC has announced charges against city officials for disclosure-related violations.

Monday's massive selloff contributed to investors pulling more out from the mutual fund complex. Exchange-traded funds saw $1 billion of outflows and high-yield investors yanked out $1.7 billion.

The 75 basis point hike, prompted partly by hotter-than-expected inflation data, is the largest since 1994.

Triple-A yield curves rose five to eight basis points. Volatility somewhat eased Tuesday as investors took pause ahead of the Federal Open Market Committee meeting.

The 25-basis-point move to higher yields is the largest one-day change in triple-As since March 2020 when COVID began roiling markets. Munis could not ignore a continued selloff in UST led by inflation and recession concerns.

Ahead of the FOMC meeting, municipal issuers pull back. Investors will be greeted Monday $2.880 billion of new-issue supply.