A government shutdown had little impact on the bond markets Tuesday morning as both municipal and Treasury yields were mostly unchanged.
Treasury yields were slightly higher. The benchmark 10-year and 30-year yields rose one basis point each to 2.63% and 3.71%, respectively. The two-year was steady at 0.34%.
Municipal bonds appeared to trade in a similar manner. "The shutdown is really not a factor in the muni market," a New York trader said. "There are a lot of bids-wanted out there, but people are seeing good turnover. It's a slightly weaker tone but nothing of consequence."
In the primary market Tuesday, Siebert Brandford Shank & Co. is expected to price for retail $473 million of California State Public Works Board lease revenue bonds, followed by institutional pricing Wednesday. The deal includes two series for correctional facilities projects rated A2 by Moody's Investors Service and A-minus by Standard & Poor's and Fitch Ratings, as well as one series for various projects at the California State University rated Aa3 by Moody's and AA-minus by Standard & Poor's and Fitch.
Barclays is expected to price $344.9 million of Washington Tobacco Settlement Authority revenue refunding bonds.
On Monday, yields on the triple-A Municipal Market Data scale ended steady to one basis point higher. The two-year was steady at 0.36% for the seventh consecutive session and the 10-year closed unchanged at 2.54% for the fourth session. The 30-year yield increased one basis point to 4.12%.
Yields on the Municipal Market Advisors scale also ended steady to one basis point higher on Monday. The two-year was steady at 0.54% for the eighth consecutive trading session and the 10-year closed flat at 2.70% for the third session. The 30-year yield increased one basis point to 4.26%.
