This week the municipal bond market is getting what it wants — and what it needs — more supply. Almost $10 billion of new deals are on tap in a calendar that will have something for almost everybody.
VOICEOVER: A supply-starved market gets much needed relief this week when almost $10 billion of municipal bonds head their way.
This week’s calendar is the biggest of the year – and the largest since last December when billions of bonds hit the market ahead of tax law changes.
Average weekly volume so far this year has been about $4.5 billion, off sharply from 2017’s average of over $6 billion a week.
The market will see the New York City TFA and Pennsylvania each selling over $1 billion of bonds for capital projects. With recent CUSIP data pointing to more supply ahead, the market may finally be getting what it really needs – a Spring of supply.