Munis weaken to end week, new-issue calendar rises to $9.5B
Munis were weaker Friday as U.S. Treasuries saw small losses out long and equities were mixed.
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Muni yields were cut five to 10 basis points, depending on the curve. Long-term UST yields rose two to three basis points at a 3:40 p.m. reading.
“We believe that our market ran too far, too fast; especially in the belly of the curve; we do not see much value in 10-year tax-exempts at 63-64% ratios,” said Barclays strategists.
This is especially true as rate volatility has started to return and issuance is also expected to rise somewhat starting next week, they said.
“Tax-exempt investors should take some profits at current levels, and look for a better entry point in December, although we see better value in long-dated bonds that would likely outperform in a selloff,” Barclays strategists said.
Primary to come
Issuance is an estimated $9.505 billion for the week of Nov. 16, with $6.284 billion of negotiated deals on tap and 3.222 billion of competitives, according to LSEG.
Houston leads the negotiated calendar with $965 million of combined utility system first lien revenue refunding bonds.
The competitive calendar is led by Mecklenburg County, North Carolina, with $833.89 million of general obligation bonds across three series.
