The municipal market appears content to follow Treasuries and appears slightly weaker Monday on little activity.
Treasuries have gradually moved higher to start the day’s session, falling on the heels of
“It just seems quiet,” a trader in New York said. “There’s a fair amount of bid-wanteds out this morning, so we’ll see. It’s got a little bit of a weaker bias to it.”
Issuance should be modest this week. The market can expect just $4.10 billion in new deals, compared with last week’s revised $3.82 billion.
This breaks down into $3.40 billion in negotiated deals expected, representing an increase from last week’s revised $3.18 billion. Also, $702.8 million should be auctioned on the competitive side of the ledger, up from last week’s revised $635.4 million.
By press time, there wasn’t yet a read on yields on the Municipal Market Data scale. On Friday, the 10-year triple-A yield rose three basis points to 2.88% and the 30-year yield increased two basis points to 4.39%. The two-year finished last week flat at 0.43% for the 23rd consecutive session.
Yields on the Municipal Market Advisors scale ended as much as three basis points higher. The 10-year yield rose two basis points to 3.02% and the 30-year yield climbed three basis points to 4.49%. The two-year was steady at 0.55% for the second session.
Treasuries have weakened beyond the front end of the curve to start Monday’s session. The benchmark 10-year and the 30-year yields have ticked up two basis points each to 2.86% and 3.88%, respectively. The two-year yield has held at 0.36%.
