Munis mixed after Tuesday's selloff, USTs see gains

Munis were mixed Wednesday, as U.S. Treasuries saw gains and equities ended up as optimism about peace talks between the U.S. and Iran continues.

Muni yields were changed up to three basis points, depending on the scale, showing much smaller yield movements than the severe cuts to AAA scales during Tuesday's selloff.

"Rates, not fundamentals, continue to drive benchmark yields higher, leaving munis on track for their fourth-worst monthly performance in 15 years," said James Pruskowski, managing director at Hennion & Walsh.

However, some stabilization in rates on Wednesday "reflects hopes of geopolitical de-escalation, with increased troop presence and early negotiation signals pointing to a potential off-ramp as economic and political costs mount," he said.

The Investment Company Institute Wednesday reported inflows of $497 million for the week ending March 18, following $782 million of inflows the previous week.

Exchange-traded funds saw inflows of $2.565 billion after $903 million of inflows the week prior, per ICI data.

New-issue market
In the primary market Wednesday, BofA Securities priced for New York City (Aa2/AA/AA/AA+/) $2.297 billion of GOs. The first tranche, $911.02 million of tax-exempts, Fiscal 2026 Series F, Subseries F-1, saw 5s of 8/2029 at 2.78%, 5s of 2031 at 3.05% and 5s of 2036 at 3.59%, callable 8/1/2036.

The second tranche, $419.56 million of taxables, Fiscal 2026 Series F, Subseries F-2, saw all bonds priced at par: 4.124s of 8/2026 and 4.324s of 2028.

The third tranche, $900 million of exempts, Fiscal 2026 Series G, saw 5s of 2/2028 at 2.63%, 5s of 2031 at 3.03%, 5s of 2036 at 3.53%, 5s of 2041 at 4.02%, 5.25s of 2046 at 4.50%, 5.25s of 2050 at 4.74% and 5.25s of 2053 at 4.83%, callable 8/1/2036.

Raymond James priced for Austin, Texas, (Aa2/AA/AA-/) $540.445 million of water and wastewater system revenue refunding and improvement bonds, with 5s of 11/2027 at 2.50%, 5s of 2031 at 2.89%, 5s of 2036 at 3.42%, 5s of 2041 at 3.88%, 5s of 2046 at 4.34%, 5s of 2051 at 4.66%, 5s of 2055 at 4.75% and 5.25s of 2055 at 4.70%, callable 5/15/2036.

Morgan Stanley (MS) priced for the University of Kansas Hospital Authority (/AA-/AA-/) $414.015 million of University of Kansas Health System health facilities revenue bonds. The first tranche, $364.015 million of fixed mode Series 2026A bonds, saw 5s of 3/2027 at 2.66%, 5s of 2031 at 3.06%, 5s of 2036 at 3.65%, 5s of 2041 at 4.15%, 5.25s of 2046 at 4.56%, 5.5s of 2051 at 4.81% and 5.5s of 2054 at 4.88%, callable 3/1/2036.

The second tranche, $50 million of long-term Series 2026B bonds, saw 5s of 3/2055 with a tender date of 3/1/2030 at 3.16%, callable 3/1/2029.

In the competitive market, the Long Beach Unified School District, California, (Aa2/AA-//) sold $280 million of Election of 2016 GOs, Series D, to BofA Securities, with 5s of 8/2026 at 2.34%, 5s of 2027 at 2.23%, 5s of 2037 at 3.13%, 5s of 2041 at 3.52%, 5s of 2046 at 4.07%, 4.5s of 2051 at 4.57% and 4s of 2053 at 4.62%, callable 8/1/2036.