September 29, 2017

Municipal bond rates rose once again last week as fixed income assets lost value upon the announcement of a White House outline for tax reform. Municipal bonds were not mentioned in the brief outline, although most analysts expect the tax-exempt status of munis to remain and be of use for upcoming infrastructure spending initiatives. The 10 and 30 year MMD indices closed last week at 2.00% and 2.84%, up 8 bps and 6 bps respectively from the prior week. As of Friday, the percent of municipals to treasuries was 85.69% for the 10 year maturity and 99.30% for the 30 year maturity.  Treasury rates were also up with the 10 year treasury at 2.334% and the 30 year treasury at 2.860%, up 8.3 bps and 8.0 bps from the prior week.

The single family issuers in the market the last three weeks were the Minnesota Housing with two series of bonds, Idaho Housing and Finance Association, Orange County Housing Finance Authority, FL and MaineHousing with multiple series. The multifamily issues in the market last few New York State HFA, Fort Wayne, IN, Augusta Housing Authority, GA, Ohio Housing Finance Agency, Mississippi Home Corp with two series, New York City Hsg Dev Corp with multiple series, Florida HFC, Colorado HFA, California Municipal Finance Authority, Public Finance Authority, WI, with three series of bonds, Orange County HFA, and Virginia Hsg Development Authority with two series. Details for all of these transactions are included in this week’s Roundup.

Economic news this week includes PMI Manufacturing Index, ISM Manufacturing Index, Construction Spending, MBA Purchase Applications, ADP Employment Change, International Trade, Jobless Claims, Bloomberg Consumer Confidence, Factory Orders, Fed Bal Sheet; Money Supply, Employment Situation, Wholesale Trade and Consumer Credit. One reminder, Monday is Columbus Day, the Bond Markets are closed.

This week has several housing deals on the calendar:

$ 81,565,000  Wisconsin Housing & Economic Development Authority

$ 57,250,000  New Mexico Mortgage Finance Authority

$ 55,390,000  Colorado Housing & Finance Authority

$ 54,870,000  Connecticut Housing Finance Authority

$ 39,950,000  New York City Housing Development Corporation

$ 34,700,000  Texas Department of Housing & Community Affairs

$ 23,050,000  New York City Housing Development Corporation

$ 20,150,000  Ohio Housing Finance Authority

$ 14,000,000  Housing Authority of Wimington, NC

Details for this and any other housing transactions along with market news will be included in next week’s Roundup.