(Bloomberg) -- 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 issue $7.8 billion of bonds over the next 30 days, according to data compiled by Bloomberg. A week ago, the calendar showed $11.2 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.
Broward County, Florida, Airport System plans to sell $489 million of bonds, Tennessee has scheduled $416 million, Florida State Board of Education will offer $230 million and California State Public Works Board will bring $223 million to market.
Municipalities have announced $13.8 billion of redemptions and an additional $10.6 billion of debt matures in the next 30 days, compared with the $21.3 billion total that was scheduled a week ago.
Issuers from New York have the most debt coming due with $2.63 billion, followed by California at $1.15 billion and Michigan with $695 million. New York City Transitional Finance Authority has the biggest amount of securities maturing, with $767 million.
The $3.6 trillion municipal market shrank by 4 % in 2014. This year, maturities are poised to drop 38 % to $176 billion from the 2014 levels.
Investors added $617 million to mutual funds that target municipal securities in the week ended Oct. 14, compared with an increase of $558 million in the previous period, according to Investment Company Institute data compiled by Bloomberg.
ETFs that buy municipal debt increased by $211.3 million last week, boosting the value of the ETFs 1.19 % to $18 billion.
State and local debt maturing in 10 years now yields 100.4 % of Treasuries, compared with 102.3 % in the previous session and the 200-day moving average of 102.6 %, Bloomberg data show.
Bonds of Tennessee and Michigan had the best performance over the past year compared with the average yield of AAA rated 10-year securities, the data shows. Yields on Tennessee’s securities narrowed 7 basis points to 2.05 % while Michigan’s declined 2 basis points to 2.32 %. Puerto Rico and Illinois handed investors the worst results. The yield gap on Puerto Rico bonds widened 64 to 10.67 % and Illinois’s rose 28 basis points to 3.96 %.