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Upcoming slate should see ‘plenty of demand’

By Aaron Weitzman
Christine Albano

Published April 18 2019

Next week’s calendar should benefit from timing and availability of paper coming on the heels of both the income tax deadline and the holiday-shortened week.

Munis will be very much on the minds of lots of people who paid larger bills due to the state and local tax changes, which may increase demand for next week’s slate, according to John Mousseau, director of fixed income at Cumberland Advisors.

“One way to combat that is to own more tax-free bonds,” he said, indicating that the market next week will absorb new supply with ease.

Overall, he said the market may be poised for a change from the current norm.

“The strength the market has experienced has to abate somewhat,” Mousseau added. “This is just some normal reversion to the mean.”

He noted that visible supply has averaged $7 billion so far in 2019.

“This is all very navigable for the market,” Mousseau said.

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