Heavy Supply, Positive Flows (Returned), Rising Benchmark Yields in the Municipal Market

  • The political seesaw about COVID-relief talks continued this week, but an agreement continues to be highly unlikely unless something changes the Senate’s view.

  • We saw about $1.7 billion of investment dollars flow into municipal funds this week, per Lipper data.

  • Municipal benchmark yields continued to rise week-over-week.

  • Issuers sold about $47 billion of bonds in September, a massive amount especially for that month. Another $14 billion is expected next week.

  • The $3+ billion Brightline West financing for a high-speed intercity passenger rail service between Los Angeles and Las Vegas is still listed as day-to-day.

  • About $110 billion of issuance is needed over the last three months of the year to not only hit a record amount of annual issuance, but total bond sales would also meet our 2020 annual issuance forecast.

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