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April 12, 2019

Trade and growth continue to dominate the global backdrop as corporate earnings season was in focus. Growth in China looks a little stronger than expected but Europe continues to be cause for concern. Volatility was low as stocks took a pause after the recent rally has investors wondering what is next. The DJIA ended the week at 26,412, down 12 points. One‐month LIBOR was up one basis point resetting at 2.48% on Friday. The SIFMA Index reset up 6 basis points to 1.54% as a muted tax season heats up. SIFMA is now 62% of one‐month LIBOR. Interest rates moved to the upside for the second consecutive week. The 10-year Treasury closed at 2.57% on Friday, up 7 basis points in yield on the week and up 16 basis points over the past two weeks. The 30-year Treasury finished the week at 2.98%, up 7 basis points from the previous Friday’s close. The 10-year MMD was unchanged, closing last week at 1.93%, and the 30-year MMD was down 2 basis points, closing at 2.68 %. As of Friday, the percent of municipals to treasuries was 75.21% for the 10-year maturity and 89.99% for the 30-year maturity.

Single family issuers in the market last week were Georgia HFA and New Mexico MFA. The multifamily issuers in the market were the California Community Housing, Maryland Dept of Housing & Community Development, and Illinois Housing Development Authority. More details on these transactions can be found in the attached roundup.

Economic releases and events for the week include Empire Manufacturing, NAHB Housing Market Index, MBA Mortgage Applications, Trade Balance, Wholesale Inventories, Beige Book Released, Initial Jobless Claims, Continuing Claims, Bloomberg Economic Expectations, Leading Index, Business Inventories, Housing Starts, Building Permits and Existing Home Sales.

There are no scheduled deals for this shortened holiday week.