The U.S. Week Ahead: Muni Market (June 3-7)

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by: Interactive Brokers
Summary

Solid demand and low supply volumes continue to color the muni bond market.

With the recent rise in the prices of U.S. Treasuries, it seems the 10-year muni-Treasury ratio has also climbed higher.

Against this backdrop, some proposed sales have crossed the wires, including $500 million worth of revenue bonds from Chandler, Arizona’s Industrial Development Authority, to help bolster Intel’s local chipmaking plants.

Also, the County of Los Angeles is eyeing a sale of $700 million worth of Tax and Revenue Anticipation Notes, or TRANs, amid a massive increase in the city’s budget and turnaround in its economic health.

The municipal bond market continues to heat up, and while issuance volume remains low, some sales have crossed the wires. This week we shine a spotlight on a proposed Los Angeles TRANs transaction, as well as Intel Corporation Project-related Revenue Bonds out of Chandler, Arizona.

Note: This material was originally published on IBKR Traders' Insight on May 30, 2019.

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Business relationship disclosure: I am receiving compensation from my employer to produce this material.