April 17 2017

Municipal bond funds post $1.63 billion of inflows for the week ended April 12 as the market improves for the fifth straight week. New issue municipal supply will rise this week to approximately $7 billion, revised from $5.3 billion. Increased geopolitical tensions spurred a flight-to-safety bid for treasuries causing equities to decline. The treasury market has rallied for the past 5 weeks and the DOW index fell 203 points Friday-to-Friday. The 10 year treasury closed Friday at 2.238%, down 14.5 bps week over week.  The 30 year treasury finished the week at 2.89%, down 11.5 bps from last Friday’s close. The 10 and 30 year MMD indices closed last week at 2.08% and 2.91%, down 9 bps and 6 bps respectively from the prior week.   As of Friday, the percent of municipals to treasuries was 92.94% for the 10 year maturity and 100.59% for the 30 year maturity. 

Housing activity last week was fairly limited with only a couple of issuers in the market. No single family housing deals priced last week. The multifamily transactions priced during the holiday shortened week included 4 series by Rhode Island Housing and 1 by Washington State Housing Finance Commission. Details about these transactions can be found inside the attached Market Roundup. 

Economic data released this week includes: Housing Market Index, Housing Starts, MBA Purchase Applications, Jobless Claims, Bloomberg Consumer Confidence, Leading Indicators, PMI Manufacturing Index, Existing Home Sales, Case-Shiller Home Prices and the FHFA House Price Index. This week the housing deals on the calendar include the following:

$27,100,000  Louisiana Housing Corporation

$33,325,000  Housing Opportunities Commission of Montgomery County, MD

$4,000,000  Jackson Health Educational & Housing, TX

$2,590,000  Public Finance Authority, WI