Markets

The series 2025B Black Belt Energy Gas District bonds are rated Baa1 by Moody's Ratings based on Deutsche Bank's key role in the transaction.

Wednesday marked the first trading session that saw cuts more than a basis point or two in spots since last week's extended selloff.

"If you're an issuer, this is fly-in season," said Jarrod Loadholt, partner at Ice Miller LLP. "Don't hope someone else is going to solve this for you — they're not."

The slowdown of growth in the fourth quarter does not imply there is dwindling demand for munis, said Pat Luby, head of municipal strategy at CreditSights.

"While there has been some reported buying by relative value institutions amid higher ratios from the muni-centric price correction, the market as a whole may not rally this week," said Matt Fabian, a partner at Municipal Market Analytics.

Hospital and health insurance operator UPMC's $735 million deal looks routine. But the volatile healthcare and insurance environments may disrupt that standard.

Municipals are little changed to start the week after last week's selloff, which saw muni yields cut up to 20 basis points out long.

Mayor Brandon Johnson's team wants the Chicago Public Schools to refinance debt to free up money for a pension payment to the city.

Gov. Josh Stein said in his State of the State address too many schools are overcrowded or decrepit.

March had been expected to be difficult due to a "combination of heavy supply, low redemptions, rate volatility, tax-related selling and now fund outflows," said Barclays strategists Mikhail Foux and Grace Cen.