With the majority of the new issues priced earlier in the week, the municipal bond market opened on a quieter note Wednesday morning.
Traders waited for the remaining large deal of the week to price following the release of a pre-marketing scale on $654.8 million of New York City Housing Development Corp. capital fund grant program revenue bonds.
"It's quiet out there," a New York trader said. "There are some small competitive deals."
A second New York trader said he wasn't seeing the large amount of bid lists that usually surface in the morning session.
In the largest deal on the negotiated calendar this week, JPMorgan is expected to price for retail the New York City housing bonds, followed by institutional pricing Thursday. The bonds are rated AA-minus by Standard & Poor's.
In pre-marketing, yields on the first series of $184 million ranged from 1.17% with a 3% coupon in 2016 to 4.17% with a 4% coupon in 2025. Bonds maturing in 2014 and 2015 were offered via sealed bid. The bonds are callable at par in 2023.
In pre-marketing, bonds on the second series of $470.8 million yielded 4.74% with a 5% coupon in 2029 and 5.06% with a 5% coupon in 2033. Bonds maturing in 2014 and 2015 were offered via sealed bid. Bonds maturing between 2016 and 2032 were not offered for retail. The bonds are callable at par in 2023.
JPMorgan priced $111.3 million of New Jersey Health Care Facilities Financing Authority revenue bonds for Robert Wood Johnson University Hospital, rated A2 by Moody's Investors Service and A by Standard & Poor's.
Yields ranged from 1.32% with a 3% coupon in 2016 to 5.58% with a 5.5% coupon in 2043. The bonds are callable at par in 2023.
Tuesday, yields on the triple-A Municipal Market Data scale ended as much as four basis points firmer. The 10-year yield fell three basis points to 2.93% and the 30-year yield slid two basis points to 4.43%. The two-year finished flat at 0.43% for the 30th straight session.
Yields on the Municipal Market Advisors scale ended as much as three basis points lower. The 10-year and 30-year yields fell two basis points each to 3.08% and 4.53%, respectively. The two-year was flat at 0.55% for the ninth session.
Treasuries were weaker Wednesday, reversing much of Tuesday's gains. The benchmark 10-year yield rose five basis points to 2.77%. The two-year and 30-year yields increased three basis points each to 0.40% and 3.74%, respectively.
