Municipal Bond News

• The University of Alaska may have the ratings on $343 million of its bonds downgraded by Moody’s Investors Service after the governor cut fiscal 2020 state appropriations to the system by 41%.
• President Trump nominated Judy Shelton and Christopher Waller to the Fed board.

• Economists now expect the Federal Reserve to cut interest rates multiple times this year -- coming around to the view held by investors, though they haven’t gotten all the way there yet.
• The current U.S. economic expansion on Monday became the longest in records dating back to the Franklin Pierce administration.

• Economists now expect the Federal Reserve to cut interest rates multiple times this year -- coming around to the view held by investors, though they haven’t gotten all the way there yet.
• The current U.S. economic expansion on Monday became the longest in records dating back to the Franklin Pierce administration.

• Sales of previously owned U.S. homes rebounded in May to a three-month high as all regions gained amid lower interest rates and a labor market that remains strong.
• The Los Angeles Unified School District’s bond ratings were cut by Moody’s Investors Service, which cited budget challenges that were worsened by voters rejecting a parcel tax.

• Filing for U.S. unemployment benefits unexpectedly increased, rising to a five-week high and adding to signs of potential cooling in the labor market. Jobless claims rose to 222,000 in the week ended June 8, according to Labor Department figures released Thursday.

• MUNI’s are headed towards their best first half since 2014.  There will still be a ton of cash pouring into the markets in June and July. The MUNI index has returned 4.60% since January outperforming the 3.70% advance for treasuries. 
• One issue you will find with MUNI's today is the lack of supply.

• MUNI’s are headed towards their best first half since 2014.  There will still be a ton of cash pouring into the markets in June and July.

What happened with Tax Reform & how has that impacted the Muni Market?

• NJ will replenish an emergency savings account that has been empty since 2008; this furthers the evidence that SALT issue continues to "do well" for states like NJ.  I suspect that if this SALT issue continues, you will see upgrades by rating agencies based on the overall funding going into the balance sheets of the states.
• Some traders say the MUNI bond rally, w

• The prices of MUNI's are nearing record highs against T bills, and this is fueling the debate over whether they have run too far.  CITI believes that these prices are "unsustainable" and are a direct result of funds flowing into funds since the start of the year.  However, MSCO indicated that it is possible for MUNI's to rise further; still, I  believe we