Munis steady as market awaits midterm results
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Municipals were little changed Tuesday as market participants awaited the results of the midterm elections. U.S. Treasuries saw small losses and equities ended mixed.
Muni yields were bumped up to a basis point, depending on the scale. UST yields were up two to three basis points at a 3:45 p.m. reading.
Market participants took a wait-and-see approach Tuesday as they waited for the results of the midterms, said Tim Iltz, fixed income credit and market analyst at HJ Sims.
There was optimism about the bond measures on the ballot in the muni market, but more broadly, there was concern about the political matters across fixed income markets as participants waited to see if the House and/or Senate will flip, he said.
There was around $2.6 billion of tax-exempt issuance Tuesday, according to J.P. Morgan, with the largest deal being the
The secondary market remained active, with more than 12,000 items out for bid just before 1:30 p.m., fairly strong for that time of day, Iltz said.
New-issue market
In the primary market Tuesday, BofA Securities priced for Houston, Texas, (/BB+/BB+/) $776.065 million of AMT airport system special facilities revenue bonds (United Airlines, Inc., terminal improvement projects), Series 2026B, with 6s of 7/2035 at 4.94%, 6s of 2036 at 5.03%, 6.25s of 2041 at 5.47% and 6.25s of 2046 at 5.76%, callable 7/15/2034.
PNC Capital Markets priced for the State Public School Building Authority, Pennsylvania, (Aa3//AA-/) $432.09 million of school lease revenue refunding bonds, with 5s of 6/2027 at 3.01%, 5s of 2031 at 3.41% and 5s of 2036 at 3.79%, noncall.
