Municipal Bond Supply to Shrink as Redemptions Exceed Sales
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The U.S. municipal bond market is poised to contract in the next month as redemptions and maturing debt exceed sales of new securities.
The gap between redemptions and new debt, a signal of supply and demand in the $3.5 trillion municipal market, will reach $27.2 billion over the next 30 days, compared with a contraction of $4.67 billion last month, according to data compiled by Bloomberg.