Munis slightly firmer in spots ahead of Trump's Iran deadline

International relations loomed large on the markets on Tuesday. Munis were steady to slightly firmer in spots, while U.S. Treasuries saw gains 10 years and in and equities ended mixed.

The start of war in Iran provoked volatility in the market in late March, but the muni market was on the quieter side, with small bumps in spots, after President Donald Trump's threat of a "deadline" if Iran doesn't agree to a deal to reopen the Strait of Hormuz by 8 p.m. Tuesday.

"The steady tone talks to the underlying demand" for munis, NewSquare Capital's Kim Olsan said. "For the moment, munis are holding steady with a watchful approach. But if for some reason, govies would fade further through tomorrow, I think probably just on a ratio correction, there might be some reaction, but I don't think [it would reflect] any weakness underlying in munis."

In the primary market Tuesday, Raymond James priced for Palm Coast, Florida, (/AA-/AA/) $306.36 million of utility system refunding and revenue bonds, with 5s of 10/2026 at 2.43%, 5s of 2031 at 2.80%, 5s of 2036 at 3.30%, 5s of 2041 at 3.73%, 5s of 2046 at 4.27%, 5s of 2051 at 4.55%, and 5s of 2056 at 4.68%, callable 10/1/2035.

In the competitive market, the Boulder Valley School District No. RE-2 sold to BofA Securities $216.95 million of Colorado School District Enhancement Program general obligation refunding bonds, with 5s of 12/2026 at 2.52%, 5s of 2030 at 2.60%, 5s of 2036 at 3.19%, 5s of 2041 at 3.60%, and 4.05s of 2044 at par, callable 12/1/2036.

The school district also sold to BofA Securities $112.655 million of Colorado School District Enhancement Program GO school improvement bonds, with 5s of 12/2031 at 2.71%, 5s of 2036 at 3.19%, 5s of 2041 at 3.60%, 4.2s of 2045 at 4.17%, 4.6s of 2051 at 4.57%, and 4.625s of 2055 at par, callable 12/1/2036.