Munis little changed, USTs see losses after Fed holds rates

Munis were little changed Wednesday as U.S. Treasuries were weaker, with the biggest losses on the front end, and equities ended down after the Federal Reserve held rates steady.

Currently, it's a Goldilocks market, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital: "Just right enough for just enough people, and steady [enough] that there doesn't seem to be any [big] price pressure at the moment."

"Steady inquiry, not aggressive, not cautious," Olsan said of the market. "It was just comfortable enough."

The Investment Company Institute Wednesday reported inflows of $782 million for the week ending March 11, following $1.452 billion of inflows the previous week.

Exchange-traded funds saw inflows of $903 million after $664 million of inflows the week prior, per ICI data.

New-issue market
In the primary market Wednesday, Raymond James priced for the New York City Municipal Water Finance Authority (Aa1/AA+/AA+/) $995.155 million of water and sewer system second general resolution revenue bonds. The first tranche, $907.57 million of Fiscal 2026 Series DD bonds, saw 5s of 6/2027 at 2.16%, 5s of 2030 at 2.38%, 5s of 2036 at 3.13%, 5s of 2039 at 3.50% and 5s of 2046 at 4.21%, callable 6/15/2036.

The second tranche, $87.585 million of Fiscal 2022 Series DD bonds, saw 5s of 6/2033 at 2.78%, noncall.

Christy Baker contributed to this report.