The tax-exempt market opened on a quiet note Monday morning as traders struggled to get back to work after Super Bowl weekend.
"Munis are quiet right now," a New York trader said. "They are not doing much. Just quiet."
The primary market is expected to be relatively quiet all week, with fewer new issues than last week. The municipal bond market can expected $4.79 billion in new issuance, down from last week's revised $5.98 billion. In negotiated deals, $2.96 billion is expected to hit the market, down from last week's revised $4.48 billion. On the competitive calendar, $1.83 billion is expected to be auctioned, up from last week's revised $1.6 billion.
Municipal bond market reads showed a steady market Friday after a slightly stronger Thursday.
Yields on the Municipal Market Data triple-A GO scale finished unchanged across the yield curve. The 10-year yield closed at 1.82% for the third session while the 30-year closed at 2.86% for the second session. The two-year held at 0.34% for the fifth session.
The Municipal Market Advisors 5% coupon triple-A benchmark scale also showed unchanged yields. The 10-year yield and the 30-year yield held at 1.84% and 2.94%, respectively, for the third consecutive trading session. The two-year closed unchanged at 0.35% for the fifth session.
Treasuries were stronger Monday morning. The two-year and benchmark 10-year yields fell one basis point each to 0.26% and 2.00%, respectively. The 30-year yield dropped two basis points to 3.19%.
