May 17, 2019

Trade concerns continued to weigh on global equity markets as the U.S. and China traded aggressive rhetoric. The DJIA closed at 25,764, down 178 points which outperformed many other global stock indices.. The SIFMA index has completely reversed the tax season spike. The index reset down 24 basis points to 1.35%which was 55% of one-month LIBOR. The continued prospects of an escalating trade war with China have propelled the current Treasury rally. The 10-year Treasury closed at 2.392% on Friday, down 7.6 basis points in yield on the week. The 30-year Treasury finished the week at 2.826%, down 6.2 basis points from the previous Friday’s close. The 10-year MMD was down 3 basis points, closing last week at 1.72%, and the 30-year MMD was down 3 basis points, closing at 2.4%. As of Friday, the percent of municipals to treasuries was 71.91% for the 10-year maturity and 84.93% for the 30-year maturity.

Single family issuers in the market last week were Minnesota Housing, Maine Housing and Nevada Housing Division. The multifamily issuers were Evansville in Indiana, Knox Co. Board of Health and Education in Tennessee, and Maryland Department of Housing & Community Development. More details on these transactions can be found in the attached roundup.

Economic releases and events for the week include MBA Mortgage Applications, FOMC Meeting Minutes Released, Initial Jobless Claims, Continuing Claims, Bloomberg Consumer Comfort, Bloomberg Economic Expectations, Markit US Manufacturing, New Home Sales, Durable Goods Orders, House Purchase Price Index, FHFA House Price Index, Conf. Board Consumer Confidence, Conf. Board Expectations and MBA Mortgage Applications.

Deals this week include:

$125,000,000 PA HFA SFMR Series 2019-129
$210,000,000 MD CDA SFMR
$125,000,000 ND HFA Series-C
$12,735,000 ND HFA Series-D
$20,000,000 Ohio HFA Multi-Family