June 30 Municipal bond issuance jumped to $33.35
billion in June, the highest monthly total so far in 2014,
according to preliminary Thomson Reuters data on Monday.
But year-to-date debt sales by states, cities, schools,
hospitals and other muni issuers totaled only $142.8 billion, a
16.1 percent drop from the same period in 2013.
Municipal debt supply has been falling as interest rates
crept up from historic lows that spurred issuers to refund
outstanding bonds. Lingering budget problems also led some
issuers to curtail borrowing plans.
June volume was 38 percent higher than in May and 35.5
percent more than in June 2013, the data showed. Nearly $1
billion of debt was sold the week of June 8, marking the year's
second-biggest weekly supply after $12.6 billion of debt was
sold the week of March 9.
Refundings totaled $18.2 billion this month, outpacing new
money sales of $15.13 billion.
Higher June supply coincided with the U.S. municipal bond
market's summer reinvestment peak, when an estimated $151
billion in coupon and principal payments flow into investors'
(Reporting by Karen Pierog; Editing by James Dalgleish)