John R. Mousseau quoted in…
Munis focus on primary, ignore UST rally
Despite the volatility and the absence of market participants, new deals are being snapped up by buyers looking for yield, experts said.
Others said the municipal market is holding its own despite the recent Treasury volatility and the decrease in trailing inflation to 3.2% from 7.7% last year at the same time.
"This is reflected in good demand for issues and the fact that the hemorrhaging of bond funds we saw last fall when Treasuries rose in yield is not happening," John Mousseau, president and chief executive officer at Cumberland Advisors, said of the overall improving backdrop.
In the primary market Wednesday, Wells Fargo Bank priced and repriced for the New York City Transitional Finance Authority (Aa1/AAA/AAA/) is set to price Wednesday $1 billion of future tax-secured subordinate bonds, Fiscal 2024 Series B, with yields bumped up to five basis points from the preliminary pricing wire: 5s of 5/2025 at 3.20% (-3), 5s of 2028 at 3.08% (-4), 5s of 2033 at 3.29% (-3), 5s of 2038 at 3.80% (-4), 5s of 2043 at 4.18% (unch), 5s of 2048 at 4.35% (-2) and 4.375s of 2053 at 4.60% (-5), callable 11/1/2033.
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