(Bloomberg) -- Municipal bond sales in the U.S. are set to decrease in the next month while the amount of redemptions and maturing debt falls.

States and localities plan to issue $10.4 billion of bonds over the next 30 days, according to data compiled by Bloomberg. A week ago, the calendar showed $11 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.

New York City Municipal Water plans to sell $475 million of bonds, Palm Beach County Schools has scheduled $289 million, Wisconsin will offer $260 million and Fairfax County, Va., will bring $229 million to market.

Municipalities have announced $16.5 billion of redemptions and an additional $10.3 billion of debt matures in the next 30 days, compared with the $31.8 billion total that was scheduled a week ago.

Issuers from New York have the most debt coming due with $1.63 billion, followed by Texas at $952 million and New Jersey with $759 million. Illinois has the biggest amount of securities maturing, with $337 million.

MARKET CONTRACTED

The $3.5 trillion municipal market contracted by $12.9 billion last month. Sales of $20.3 billion compared with redemptions and maturing debt that totaled $33.2 billion. Last year, the market shrank by 4 %. This year, maturities are poised to drop 38 % to $176 billion from the 2014 levels.

Investors added $963 million to mutual funds that target municipal securities in the week ended Feb. 4, compared with $1.28 billion in the previous period and the one-year average of $631 million, according to Investment Company Institute data compiled by Bloomberg.

ETFs that buy municipal debt received $46 million of new cash so far this month, increasing the amount invested in the ETFs by 0.28 % to a total of about $16 billion, according to data compiled by Bloomberg.

State and local debt maturing in 10 years now yields 100.7 % of Treasuries, Bloomberg data show. Since 2000, the gap has averaged 93.8 %.

Bonds of Michigan and New York had the best performance over the past year compared with the average yield of AAA rated 10-year securities, the data show. Yields on Michigan’s securities narrowed 12 basis points to 2.34 % while New York’s declined 7 basis points to 2.12 %.

Puerto Rico and New Jersey handed investors the worst results. The yield gap on Puerto Rico bonds widened 47 basis points to 9.39 % and New Jersey’s rose 17 basis points to 2.68 %.

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