The tax-exempt market traded steady Tuesday morning after a flat to stronger session Monday. Traders noted there was a bid in the market but munis weren't necessarily moving in either direction.
"There's a bid in the market," a New York trader said. "So it's not down, but it's not up. It's steady."
In the primary market, Citi is expected to price $233.6 million of Allentown, Pa., neighborhood improvement zone development authority bonds, rated Baa2 by Moody's Investors Service. The first series is comprised of $193.1 million of tax-exempt revenue bonds followed by a second series of $40.5 million of federally taxable bonds.
Morgan Keegan is also expected to price $175.3 million of Virginia Housing Development Authority taxable rental housing bonds, rated Aa1 by Moody's and AA-plus by Standard & Poor's.
On Monday, the
Treasuries were slightly weaker Tuesday morning. The two-year yield and the 30-year yield rose one basis point each to 0.28% and 2.91%, respectively. The benchmark 10-year yield was flat at 1.72%.
