Page 11 - Ramirez Co News Today

The long bond on the exempt $955 million tranche have traded stronger in the secondary market since pricing.

Investors pulled more from municipal bond mutual funds as the Investment Company Institute reported $4.5 billion of outflows in the week ending March 30.

Municipals have taken a hit in the first months of 2022, but higher yield levels and cheaper ratios have offered possibilities for both retail and institutional buyers, analysts say.

Next week's supply is slated to be $10.166 billion, $8.982 billion of negotiated deals and $1.184 billion of competitive loans. A larger primary calendar is led by two billion-dollar airport deals.

Investors pulled more from municipal bond mutual funds in the latest week, with Refinitiv Lipper reporting $2.038 billion of outflows, up from $1.503 billion of outflows in the previous week.

Holders tendered about 75% of U.S. Virgin Islands Public Finance Authority bonds that were eligible for a tender offer.

Without a reversal in UST or municipal bond mutual fund outflows, munis will continue to be pressured.

With massive secondary selling pressure and a larger calendar, credit spreads are likely to continue to widen.

Next week's potential volume is slated to be more than $8 billion, led by $1.25 billion of taxable and tax-exempt future tax-secured subordinate bonds from the New York City Transitional Finance Authority.

The triple-A 10-year yield is above 2% on all scales, the highest since March 2020.