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February 8, 2019

Equities moved up to start the week before trade and global growth concerns emerged again putting a halt to the rally. The DJIA hit 25,411 on Tuesday before closing the week at 25,106, up 43 points. Treasuries rallied last week as growth concerns persist both domestically and abroad. One‐month LIBOR was down one basis point resetting at 2.50% on Friday. The SIFMA Index continued to increase last week rising by 8 basis points last week (and 22 basis points over the past two weeks) resetting at 1.51%, which was 60% of one‐month LIBOR. The 10-year Treasury closed at 2.64%, down 5 basis points in yield on the week and down 12 basis points over the past two weeks.  The 30-year Treasury finished the week at 2.98%, down 4.5 basis points from the previous Friday’s close. Both the 10-year MMD and 30-yaer MMD were down 5 basis points, closing last week at 2.12% and 2.97%, respectively. As of Friday, the percent of municipals to treasuries was 80.42% for the 10-year maturity and 99.63% for the 30-year maturity.

Single family issuers in the market last week were Texas Dept of Housing & Community Affairs, South Dakota Housing Development Authority, Connecticut Housing Finance Authority, and Minnesota Housing. Multifamily issuers in the market were Allen County (IN), New York City Housing Development Corporation, Capital Area Housing Finance Corp (TX), and Maryland Dept of Housing & Community Development. More details on this transaction can be found in the attached roundup.

Economic releases and events for the week include MBA Mortgage Applications, CPI, Monthly Budget Statements, PPI, Initial Jobless Claims, Continuing Claims, Retail Sales, Bloomberg Consumer Comfort, Business Inventories, Mortgage Delinquencies, MBA Mortgage Foreclosures, Empire Manufacturing, Import Price Index and Industrial Production. Please note that the government has been temporarily opened, but is expected to close again on Friday, February 15th.

The upcoming week has a handful of deals:

$252,575,000 New Jersey Housing and Mortgage Finance Agency
$175,000,000 Tennessee Housing Development Agency
$93,630,000 Washington State Housing Finance Commission
$70,335,000 Wyoming Community Development Authority
$8,500,000 Kentucky Housing Corporation (MFH)