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April 9, 2018

Municipal bonds drifted a few basis points up and down through the week and traders and investors watched rates in relation to the macro-dialogs of trade, inflations and geopolitics. Taxable municipal bonds continue to perform well compared to other taxable fixed income classes. Issuers are benefitting as muni spreads hold in compared to the widening corporate bond spreads witnessed over the past months. The markets remain volatile as the strong protectionist trade talk by the U.S. and China continues to fuel uncertainty.

Treasury rates increased for the 10 year treasury closing Friday at 2.77%, up 3.4 bps week over week. The 30 year treasury finished the week at 3.02%, up 4.5 bps from the previous Friday’s close. The 10 and 30 year MMD indices closed last week at 2.43% and 2.96%, up 1 bp and 13 bps on each scale respectively from the prior week. As of Friday, the percent of municipals to treasuries was 87.60% for the 10 year maturity and 98.05% for the 30 year maturity. 

The single-family issuers in the market over the last couple weeks were Iowa Finance Authority, New Mexico Mortgage Finance Authority, and Montana Board of Housing. Issuers in the multifamily space included Travis County Housing Finance Corporation (TX), Panhandle Regional Housing Finance Corporation (TX), New York City Housing Development Corporation, Oklahoma Housing Finance Agency, California Public Finance Authority, Maryland Dept of Housing & Community Development, Douglas County Housing Authority (NE), Fulton County Development Authority (GA), and Macon-Bibb County Housing Authority (GA). Details for all of these transactions are included in this week’s Roundup.

Economic news this week includes PPI Final Demand, Wholesale Trade, Wholesale Inventories, MBA Mortgage Applications, Consumer Price Index, Monthly Budget Statement, Import Price Index, Initial Jobless Claims, Continuing Claims, Export Price Index, Bloomberg Consumer Comfort, Retail Sales Advance, Empire Manufacturing, and Business Inventories.

This week the housing deals on the calendar include the following:

$87,890,000  New York State Finance Agency
$57,485,000  Colorado Housing & Finance Authority
$50,617,000  Minnesota Housing Finance Agency
$40,000,000  Maine State Housing Authority
$25,000,000  Idaho Housing & Finance Association
$ 9,425,000  Douglas County Housing Finance Authority