Page 2 - Bid Group News Today

Investors will be greeted Monday with a new-issue calendar estimated at $5.268 billion.

Outflows continued as investors pulled $3.876 billion from mutual funds in the week ending Oct. 19 after $4.532 billion of outflows the previous week, according to the Investment Company Institute.

While muni performance has turned negative for October, "the asset class is significantly outperforming UST," said Jeff Lipton, managing director of credit research at Oppenheimer Inc.

"Municipal market performance has improved, but the bumpy road continues as investors remain uncertain about the interest rate environment," said Nuveen's Head of Municipals John Miller.

Selling pressure was on the rise again this week. Thursday's $2.919 billion of bonds out for the bid was only surpassed on March 19, 2020, when they hit $4.115 billion. A larger calendar closes out October.

Relative cheapness, wider spreads and outperformance in munis is providing better value, all set against a very solid and resilient credit background, analysts say, but supply is testing investor sentiment amid volatility.

The new-issue calendar tops $9 billion led by $3 billion taxable and tax-exempts from University of California Regents, a $1 billion plus healthcare deal from Michigan and $1.35 billion of GOs from Washington State.

Washington will bring $742 million of general obligation bonds in competitive sales Tuesday, providing guidance for triple-A benchmark yields.

The state of Washington sold $743 million of general obligation bonds in the competitive market at similar spreads to its November sale while some issuers have moved to the day-to-day calendar.

Municipal to UST ratios hit highs earlier in the week, creating entry points for buyers to return to the market even as ratios fell on the week. The primary will see a smaller calendar at $5.4 billion.