Washington

The Municipal Securities Rulemaking Board Thursday announced the members of its 2025 advisory groups.

Among the materials for lawmakers is a new report estimating the tax exemption saves issuers $824 billion through 2035.

Treasury Secretary nominee Scott Bessent sparred with the Senate Finance Committee over the future direction of fiscal policy in the Trump administration that will be trying to tackle major tax legislation.

OMB director nominee Russell Vought said he supports allowing the president to redirect funding away from state and local governments, bypassing the congressional appropriations process.

The former congressman from Wisconsin saw bipartisan support Wednesday during a friendly Senate confirmation hearing.

The Fed may make more cuts and there's a floor forming under the Treasury market, per panelists at the Executives' Club of Chicago's Annual Economic Outlook.

Municipals are underperforming USTs month-to-date, with the Bloomberg Municipal Index showing losses of 1.02% versus 0.92% for USTs as of Tuesday, but both are outperforming losses in corporates that are seeing 1.23% losses in January.

The House Ways and Means Committee has kicked off debate on the Tax Cuts and Jobs Act that is scheduled to sunset at the end of the year, with much at stake for the municipal market.

Lifting the SALT cap is one of several thorny issues Republicans hope to iron out as part of a larger reconciliation bill by March.

The muni market also faces an elevated new-issue calendar, which may put additional pressure on muni yields. Bond Buyer 30-day visible supply sits at $17.57 billion.