Tax

Senate GOP leaders also aim to make the TCJA tax cuts permanent, which would raise the costs of tax reform unless a new scoring method is adopted.

The Bond Buyer's Caitlin Devitt and Kyle Glazier discuss the outlook for tax and infrastructure legislation.

Short-end U.S. Treasuries rallied mid-morning, while UST yields were little changed out long, but ended the day weaker across most of the curve with the greatest losses out long. Munis were steady throughout the day.

Lobbying efforts to keep the muni tax exemption in place is boiling down to convincing select members of the House Ways and Means Committee about the value of munis in financing local infrastructure projects.

Legislation to continue a sales tax and revenue bond program until July 1, 2028, and allow its use for mall redevelopment projects, passed the Senate.

The House now needs to negotiate a final budget resolution with the Senate, whose leaders have said they want to make the TCJA permanent.

The unpredictable nature of legislating leads most to holding off on disclosure changes until a bill becomes a law.

Native American Tribes are working their way through Congressional committees looking for support on legislation that would allow the tribes to issue municipal bonds using the same rules as state governments.

The Senate move provides an alternative pathway towards a final budget agreement as the House wrestles with an approach that could include key tax policy changes for the muni market.

Moody's is the latest rating agency to warn about a budget squeeze for Texas schools, which have been prolific issuers of voter-approved bonds in recent years.