Bonds

Municipals ended the week little changed ahead of an at least $9 billion new-issue calendar led by a Puerto Rico Aqueduct and Sewer Authority $1.4 billion refunding deal and a Massachusetts $1.2 billion of taxable general obligation revenue anticipation notes, among an eclectic mix of credits. Triple-A benchmarks held steady with some curves showing minor
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Municipal yields held steady on AAA benchmarks Thursday amid choppy trading that veered toward sideways as inflows, rich muni/U.S. Treasury ratios and not enough new paper have become status quo in the market. Municipals are decoupled from U.S. Treasuries, which can clearly be seen in rich ratios (the 10-year muni as low as 70% of
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Municipals outperformed Treasuries as yields rose 10 basis points on the UST 10- and 30-year on talk of a potential stimulus deal and equities hit all-time highs. Secondary trading held municipal yields steady while Illinois’ highway deal priced and re-priced five to nine basis points lower and New York City Municipal Water Authority offered bonds
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COVID-19 related curbs on economic activity in Massachusetts triggered a downgrade on Wednesday from S&P Global Ratings, which lowered its rating on the commonwealth’s Series 2004 special obligation dedicated tax revenue bonds and Series 2005 revenue refunding bonds two notches to BBB-plus from A. The outlook is negative. “The downgrade reflects a significant drop in
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Federal Reserve officials discussed providing more guidance on their bond-buying strategy during their Nov. 4-5 policy meeting. “Many participants judged that the Committee might want to enhance its guidance for asset purchases fairly soon,” according to meeting minutes published Wednesday by the Fed. In addition, “most participants judged that the guidance for asset purchases should
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Illinois will borrow $2 billion through the Federal Reserve’s short-term lending program that expires at the end of the year, Gov. J.B. Pritzker announced Wednesday. The state had been weighing how much to tap of the $5 billion in authority granted by state lawmakers in the spring when they signed off on the $43 billion
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Now that it’s been given a new lease on life after the passage of Proposition 14, a statewide $5.5 billion ballot measure, California’s bond-funded stem cell research agency will re-write its budget. The California Institute for Regenerative Medicine was created in 2004 when voters approve Proposition 71, allocating $3 billion in general obligation bond proceeds
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President-elect Joe Biden plans to nominate former Federal Reserve Chair Janet Yellen to serve as his Treasury secretary, a move that would put the first woman and a seasoned central banker into the nation’s top economic policy job as the coronavirus pandemic threatens another U.S. downturn, people familiar with the matter said. In Yellen, Biden
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The Puerto Rico Oversight Board approved entering central government debt negotiations with a proposal that would include a 65.9% to 68.6% haircut for bondholders. The board voted 4-0 at Friday’s public meeting to adopt this position in negotiations with creditors. The Board considered the same resolution at a meeting on Oct. 30, and board member
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California will have a $26 billion windfall to help balance next year’s budget, an unexpected cushion against the pandemic-led recession as revenue exceeds earlier dire predictions and costs fall below expectations. The latest revenue and spending report by the state’s nonpartisan Legislative Analyst’s Office is in stark contrast to the doom predicted early this year,
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New Jersey’s $3.7 billion tax-exempt COVID-19 emergency bond deal was oversubscribed to the tune of $40 billion, repriced by as much as 20 basis points to lower yields, coming amid a stronger municipal market Tuesday. The strong demand amid a dearth of new municipal issuance by states and a search for yield also allowed New
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Municipal bonds strengthened on Thursday after a one-day break in the trading week. Yields on top-quality bonds fell as much as four basis points on the intermediate- to long-end of AAA curves. Yields on U.S. Treasuries dropped as much as nine basis points. “Coronavirus resurgence has cities and states planning on, if not already executing,
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Legislative action to respond to Illinois’ gaping state budget hole won’t come before January after the General Assembly canceled its fall veto session. Democratic leaders who control the House and Senate announced the decision Tuesday amid a dramatic rise in COVID-19 cases in the state capital. I’m very very focused on making sure that our
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The Associated Press called the presidential race in favor of Democratic candidate Joe Biden.Bloomberg News Public finance sector officials are optimistic a Joe Biden presidency will mean strong financial support for state and local governments as well as robust infrastructure legislation. They also are hopeful the negative impacts of a federal tax overhaul enacted in
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The Federal Reserve again stated it will use all tools necessary to support the economy and in his press conference, Board Chairman Jerome Powell said the Federal Open Market Committee has started to discuss whether the emergency facilities created earlier this year need to be extended as the number of coronavirus cases is again rising.
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