The tax-exempt market extended gains into its fourth consecutive trading session Wednesday afternoon.
Traders said prices continued to climb despite a large amount of primary supply coming to market Wednesday.
"The market is higher," a New York trader said. "People are bumping bonds and selling."
In the primary market Wednesday, JPMorgan priced $602.8 million of Arizona Transportation Board subordinated highway revenue bonds, rated Aa2 by Moody's Investors Service and AA-plus by Standard & Poor's.
Yields ranged from 1.37% with 3.5% and 5% coupons in a split 2020 maturity to 2.96% with a 5% coupon in 2038. The bonds are callable at par in 2022.
Citi priced for institutions $500 million of New York Metropolitan Transportation Authority revenue bonds, rated A2 by Moody's and A by Standard & Poor's and Fitch Ratings.
In retail pricing Tuesday, yields ranged from 0.50% with a 2% coupon in 2014 to 3.39% with a 5% coupon in 2043. Bonds maturing in 2013 were offered via sealed bid. The bonds are callable at par in 2023. Institutional pricing was not available by press time.
Bank of America Merrill Lynch priced $303.6 million of Oregon taxable and tax-exempt general obligation bonds, rated Aa1 by Moody's and AA-plus by Standard & Poor's and Fitch.
The taxable pricing consisted of $175.1 million of bonds in two series.
The first series of $131 million were priced at par to yield from 0.23% in 2014 to 4.012% in 2035. Spreads ranged from 15 basis points to 175 basis points above the comparable Treasury yield.
The second series of $44.1 million were priced at par to yield from 0.32% in 2014 to 4.012% in 2035. Spreads ranged from 15 basis points to 175 basis points above the comparable Treasury yield.
The tax-exempt pricing consisted of $128.5 million of bonds in two series.
Yields on the first series of $101 million ranged from 0.25% with a 3% coupon in 2014 to 2.86% with a 5% coupon in 2042. The bonds are callable at par in 2023.
Yields on the second series of $27.5 million ranged from 0.25% with a 2% coupon in 2014 to 3.23% with a 3.125% coupon in 2036. The bonds are callable at par in 2023.
In the competitive market, Bank of America Merrill Lynch won the bid for $250 million of North Carolina revenue bonds. Prices were not yet available.
On Tuesday, the Municipal Market Data scale ended higher for the third consecutive trading session. The two-year and 10-year yields fell one basis point each to 0.33% and 1.68%, respectively. The 30-year yield dropped two basis points to 2.72%.
The 10-year yield still remains 21 basis points above its record low of 1.47% set Nov. 28. The 30-year yield trades 25 basis points above its record low of 2.47% set Nov. 28.
Treasuries were mostly steady Wednesday afternoon. The two-year and 30-year yields were flat at 0.25% and 3.02%, respectively. The benchmark 10-year yield fell one basis point to 1.82%.