The 30-day visible supply is used to gauge the health of the new issue municipal bond market dealers and investors will want to know how much total new debt is coming on the market. The 30 day visible supply will tell investors the total amount of new bonds being offered in the next month. The 30 day visible supply is published in The Daily Bond Buyer.
If the 30-day visible supply is increasing, it is a bearish signal for the health of the overall municipal bond market. As the total amount of par value increases, it drives overall prices down and interest rates increase as a result. If the 30-day visible supply is falling, it is a bullish sign for the municipal bond market. As the supply of new issues fall, prices will tend to increase and interest rates will fall as a result.
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