Munis Steady as Connecticut Deal Prices for Retail.

Municipal bonds remained stable on Monday, with U.S. Treasuries weakening and equities rising. The new-issue calendar for the week is estimated at $1.6 billion, with only two deals over $100 million. Jefferies held a one-day retail order for $826.340 million of general obligation bonds from Connecticut. The muni market has rallied since November, with ratios falling and yields continuing to decline. Investors pulled money from muni mutual funds but flows turned positive after the Federal Reserve announcement. The muni market is expected to benefit in 2024 as investors seek to allocate to the asset class. However, valuations are already high, so it may be difficult for munis to outperform further. Investors may instead view munis as a low-risk way to earn a respectable tax-adjusted return. The AAA scales for munis remained unchanged, and Treasuries were weaker. The California Public Finance Authority is set to price $350.755 million of Sharp Healthcare revenue refunding bonds on Tuesday. [Extracted from the article]