Munis and USTs slightly cheaper with eyes on Jackson Hole
Munis were slightly cheaper on Wednesday, as U.S. Treasuries saw losses and equities ended lower.
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Muni yields cheapened by up to three basis points, with the biggest losses in the 10- to 20-year range. UST yields were one to four basis points cheaper.
Munis are in a “wait-and-see mode,” said James Pruskowski, managing director at Hennion & Walsh. The release of personal consumption expenditures data showed inflation was a little hot, he said, which caused the market to drift a little higher with slightly softer liquidity.
Market participants are “asking a lot of questions” ahead of the Jackson Hole meeting, which begins on Thursday, Pruskowski said, “where [Federal Reserve Chair Kevin] Warsh is expected to calm markets down a bit” with his Friday speech.
ICI data
The Investment Company Institute Wednesday reported inflows of $1.386 billion for the week ending Aug. 19, following $1.54 billion of inflows the previous week.
Exchange-traded funds saw inflows of $974 million after $477 million of inflows the week prior, per ICI data.
New-issue market
In the primary market Wednesday, BofA Securities priced for Portland, Oregon, (Aa2/AA+//) $585.63 million of green second lien water system revenue and refunding bonds, Series 2026A, with 5s of 4/2027 at 2.45%, 5s of 2031 at 2.87%, 5s of 2036 at 3.40%, 5s of 2041 at 4.04%, 5.25s of 2046 at 4.32%, 5.25s of 2051 at 4.58%, 5.25s of 2056 at 4.72%, 5.5s of 2059 at 4.71% and 5s of 2059 at 4.85%, callable 4/2036.
Barclays priced for Pennsylvania State University (Aa1/AA//) $394.65 million of tax-exempt Series A of 2026 bonds, with 5s of 9/2027 at 2.53%, 5s of 2031 at 2.93%, 5s of 2036 at 3.48%, 5s of 2041 at 4.03%, 5s of 2046 at 4.38%, 5.25s of 2051 at 4.60% and 5s of 2056 at 4.82%, callable 9/2036.
In the competitive market, Minneapolis, Minnesota, (Aaa/AAA/AAA/) sold to Jefferies $269 million of general obligation bonds, with 5s of 12/2026 at 2.45%, 5s of 2031 at 2.87%, 5s of 2036 at 3.45%, 5s of 2041 at 3.97% and 4.125s of 2045 at 4.45%, callable 12/2035.
