June is usually a busy period for municipal sales, but issuers floated only $30.5 billion of debt overall last month. That amount represents a 30.4% decline from the $43.9 billion issued in June 2009, according to preliminary data from Thomson Reuters.
Analysts said increased uncertainty in the municipal market, in combination with broader market volatility relating to the sovereign debt crises in Europe, was to blame for the light supply. Chris Mier, managing director at Loop Capital Markets, said risk aversion is on the rise in the municipal bond market.
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