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January 11, 2019

Equities were on the rise last week despite the prolonged government shutdown as trade talks softened and the Fed seems likely headed for a wait and see approach before continuing with its tightening cycle. The DJIA ended the week at 23,995, up 562 points. One‐month LIBOR was down one basis point resetting at 2.51% on Friday. The SIFMA Index was down 24 basis points last week resetting at 1.39% which is 55% of one‐month LIBOR. Treasury yields moved up last week before finding some strength on Friday. The 10-year Treasury closed at 2.702%, up 3 basis points in yield week over week. The 30-year Treasury finished the week at 3.034%, up 5 basis points from the previous Friday’s close. The 10-year MMD was up 1 basis point, while 30-year MMD was up 8 basis points, closing last week at 2.21% and 3.03%, respectively. As of Friday, the percent of municipals to treasuries was 81.79% for the 10-year maturity and 99.87% for the 30-year maturity.

Single family issuers last week North Dakota Housing Finance Agency, Utah Housing Corporation and Idaho Housing & Finance Association. The sole issuer in the multifamily space last week was Maryland Department of Housing and Community Development. More details on these transactions can be found in the attached roundup.

Economic releases and events for the week include Empire Manufacturing, PPI Final Demand, Wholesale Inventories, Brexit Vote (UK), New Home Sales, Factory Orders, Durable Goods Orders, Trade Balance, Beige Book, MBA Mortgage Applications, Wholesale Inventories, Initial Jobless Claims, Industrial Production, Consumer Sentiment. Please note that the partial government shutdown may postpone some of these releases.

Housing deals expected next week are:

$201,780,000 Pennsylvania Housing Finance Agency
$86,135,000 New Mexico Mortgage Finance Authority
$39,000,000 Maine State Housing Authority
$12,500,000 Texas Department of Housing & Community Affairs (MFH)
$8,000,000 California Housing Finance Agency (MFH)
$6,980,000 Minnesota Housing Finance Agency (MFH)