(Bloomberg) -- Municipal bond sales in the U.S. are set to increase in the next month while the amount of redemptions and maturing debt falls.
States and localities plan to issue$10.2 billion of bonds over the next 30 days, according to data compiled by Bloomberg. A week ago, the calendar showed $8.8 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.
North Texas Tollway Authority plans to sell $750 million of bonds, Illinois Finance Authority has scheduled $468 million, Austin, Texas, will offer $293 million and Lee Memorial Health System, Florida will bring $277 million to market.
Municipalities have announced $11.1 billion of redemptions and an additional $12.9 billion of debt matures in the next 30 days, compared with the $25.8 billion total that was scheduled a week ago.
Issuers from Florida have the most debt coming due with $1.79 billion, followed by California at $1.17 billion and New York with $1.16 billion. Washington, D.C. has the biggest amount of securities maturing, with $413 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 removed $715 million from mutual funds that target municipal securities in the week ended August 26, compared with an increase of $50 million in the previous period, according to Investment Company Institute data compiled by Bloomberg.
ETFs that buy municipal debt fell by $100.3 million last week, reducing the value of the ETFs by 0.58% to $17.2 billion.
State and local debt maturing in 10 years now yields 105.209% of Treasuries, compared with 104.213% in the previous session and the 200-day moving average of 101.835%, 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 15 basis points to 2.15 percent while Michigan’s declined 6 basis points to 2.46%. Puerto Rico and Illinois handed investors the worst results. The yield gap on Puerto Rico bonds widened 110 to 11% and Illinois’s rose 40 basis points to 4.20%.