Muni Sales Poised to Decelerate While Redemptions Rise

Municipal bond sales in the U.S. are set to decrease in the next month while the amount of redemptions and maturing debt rises.

States and localities plan to sell $14.6 billion of bonds over the next 30 days, according to data compiled by Bloomberg. A week ago, the calendar showed $20.8 billion planned for the coming month. Supply figures exclude derivatives and variable-rate debt. Some municipalities set their deals less than a month before borrowing.

In the coming weeks, Los Angeles Community College District plans to sell $1.33 billion of bonds, Dallas has scheduled $529 million, the Bay Area Toll Authority in California will offer $536 million and Harris County/Houston Sports Authority will bring $458 million to market.

Municipalities have announced $15.2 billion of redemptions and an additional $12.7 billion of debt matures in the next 30 days, compared with the $27.5 billion total that was scheduled a week ago.

Issuers from Illinois have the most debt coming due with $2.55 billion, followed by New Jersey at $1.33 billion and New York with $1.13 billion. The state of Illinois has the biggest amount of securities maturing, with $952 million.

The $3.5 trillion municipal market contracted by $641 million last month. Sales of $34.8 billion compared with redemptions and maturing debt that totaled $35.5 billion.

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