Municipal bond sales in the U.S. are set to increase in the next month while the amount of redemptions and maturing debt accelerates.
States and localities plan to issue $12.2 billion of bonds over the next 30 days, according to data compiled by Bloomberg. A week ago, the calendar showed $12.1 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.
Citizens Property Insurance Corp. of Florida plans to sell $750 million of bonds, Springfield Missouri Public Utility has scheduled $515 million, Port Authority of New York and New Jersey will offer $500 million and the Miami and Dade County Florida Water and Sewer authority will bring $482 million to market.
Municipalities have announced $17.4 billion of redemptions and an additional $17.0 billion of debt matures in the next 30 days, compared with the $29.3 billion total that was scheduled a week ago.
Issuers from New York have the most debt coming due with $1.88 billion, followed by California at $1.87 billion and Florida with $1.38 billion. Citizens Property Insurance has the biggest amount of securities maturing, with $765 million.
The $3.6 trillion municipal market shrank by 4 percent in 2014. This year, maturities are poised to drop 38 percent to $176 billion from the 2014 levels.
Investors removed $36 million from mutual funds that target municipal securities in the week ended May 6, compared with an increase of $1 billion in the previous period, according to Investment Company Institute data compiled by Bloomberg.
Exchange-traded funds that buy municipal debt increased by $9.2 million last week, boosting the value of the ETFs 0.05 percent to $16.8 billion.
State and local debt maturing in 10 years now yields 107.04 percent of Treasuries, compared with 102.555 percent in the previous session and the 200-day moving average of 97.756 percent, Bloomberg data show.