Jan 20 U.S. states, cities, schools and other
issuers in the municipal market are expected to sell about $7
billion of bonds and notes next week after muni prices dropped
sharply on Thursday and Friday.
The price fall boosted the 10-year yield on Municipal Market
Data's benchmark triple-A scale 17 basis points over the week to
2.33 percent. The 30-year yield rose 15 basis points to end
Friday at 3.06 percent.
Peter Block, a muni market strategist at Ramirez, said
tax-free bonds were following a slump in U.S. Treasuries.
"It's really driven by Treasuries. It's hard to say what
will happen next week," he said, adding that much depends on
what messages emerge from Washington under President Donald
Trump's new administration.
Topping next week's negotiated calendar is a $486 million new
and refunding city of Baltimore water and wastewater revenue
bond issue pricing through Citigroup on Thursday after a retail
presale period on Wednesday.
San Francisco's Bay Area Toll Authority will sell $450
million of toll bridge revenue bonds through Bank of America
Merrill Lynch on Thursday.
In competitive bidding, the Metropolitan Government of
Nashville and Davidson County will sell $457 million of general
obligation bonds on Tuesday. The bonds carry serial maturities
between 2018 and 2036, according to the preliminary official
The Los Angeles County Metropolitan Transportation Authority
has set a $455.7 million sales tax revenue bond sale for
Tuesday. The bonds mature in 2018 through 2042.
U.S. municipal bond funds reported a second straight week of
net inflows, indicating investors were seeing relative value in
munis, according to Block. Lipper reported $511.7 million of
inflows in the week ended Jan. 18, down from $974 million in the
(Reporting By Karen Pierog; Editing by Chizu Nomiyama)