Municipal market closes out May steady
By Lynne Funk, Christine Albano
May 29, 2020, 4:38 p.m. EDT
https://www.bondbuyer.com/news/municipal-market-closes-out-may-steadyThe municipal market concluded the final trading session of May on steady footing, with secondary yields remaining flat Friday amid a pickup in issuance.
Meanwhile, New York City will begin to reopen starting June 8, the mayor and governor said Friday.
Generic municipal yields have held at steady levels, though some sources said that is a signal that a breakout in movements in either direction could occur
High-yield issues were slightly higher on the day.
Tightening spreads and low yields ended the week on
“As high-yield fund outflows subsided, benchmark liquid high-yield names such as Buckeye Tobacco, COFINA, and Illinois GOs all tightened 20 to 25 basis points on the strength,” Horowitz said.
In addition, he said last week's NuStar Logistics new issue traded up eight basis points. The Guam Water deal this week, he said, was the only “real yield” and summoned demand over 22 times the amount available, bumped 25 basis points, and then rallied another 33 basis points on the break, according to Horowitz.
Looking ahead, the high-yield spreads should continue to tighten as the generic market will continue to see a supply-demand imbalance.
“Next week's yield calendar is again very light, so we are expecting spreads to continue to grind tighter as high-yield funds look to re-deploy cash and the secondary market selling pressure has all but abated,” Horowitz said.
“Looking at the high-grade, tax-exempt calendar, we would expect subscription levels to be heavy next week as there does not appear to be enough supply to satiate the market's demand,” he added.
docket but no date set. Wells Fargo is lead manager.
in the previous week. Ex-ETFs, muni funds saw inflows of $870.959 million after inflows of $1.234 billion in the prior week.
The four-week moving average was positive at $776.244 million, after being in the green at $189.374 million in the previous week.
Up little bit in may..will trend continue next month,
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