This week’s chart shows yet another sign that the pandemic continues to take it’s toll on the U.S. economy
Here we are looking at the 30-day visible supply of the municipal bond market. It represents the total face value of all new debt that is expected to be issued by cities and states in the next month.
Having lost much in the way of tax revenues and increased spending to address the health crisis, these municipalities are now scrambling to raise money ahead of the election and the potential uncertainty faced after that.
Now at $31 billion, we haven’t seen new debt in the municipal bond market reach these levels since back in the early 2000’s as the economy was recovering from the recession induced by the tech boom and bust.
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Indices mentioned are unmanaged, do not incur fees, and cannot be invested into directly.
Past performance does not guarantee future results.