Secondary bond market

Growing new-issue supply is "adding to bidders' 'wait-and-see' mentality with a variety of credits coming to market at favorable spreads," said FHN Financial's Kim Olsan. Next week's calendar hits $8.4 billion.

Muni yields rose up to eight basis points, depending on the scale, while UST yields rose up to six basis points at 30 years.

The Investment Company Institute Wednesday reported large inflows into municipal bond mutual funds, with investors adding $2.066 billion to funds, while exchange-traded funds saw $1.082 billion of outflows for the week ending Jan. 10.

Munis have "struggled to get out of starting gate" to start 2024 as munis are returning negative 0.24% so far this year, said Jason Wong, vice president of municipals at AmeriVet Securities.

The tax-exempt market could also see pressure due to "heavy issuance, anemic flows, and rate volatility," according to Barclays PLC.

The top two municipal bond insurers wrapped $31.845 billion in 2023, up 10.4% from the $28.847 billion of deals in 2022, according to Refinitiv data.

The December consumer price index came in slightly stronger than expected, perhaps eliminating the possibility of a rate cut in March, analysts said.

There were several ways Adaje could integrate ficc.ai's offerings into its system, the most impactful would be tender offering analyses, said Dan Silva, Adaje CEO.

The one-year was cut up to eight basis points, depending on the scale.

The offered curve is "still deeply overbought" at all maturities outside of one year, which is "a signal for issuers and sellers to become aggressive," said Matt Fabian, a partner at Municipal Market Analytics.