Market Post: Secondary Buyers Push Market Higher

Trading activity picked up Wednesday morning as buyers came out early in the secondary market.

"There are buyers out there," a New York trader said, adding the market traded stronger. This came a day after the week's largest deals were relatively well received in the primary Tuesday.

In the primary market, RBC Capital Markets is expected to price $526.2 million of Denver Public Schools taxable certificates of participation fixed rate refunding bonds, rated Aa3 by Moody's Investors Service and AA by Standard & Poor's.

Loop Capital Markets should price for retail $417 million of San Diego Unified School District general obligation dedicated unlimited ad valorem property tax bonds, rated Aa3 by Moody's and AA-minus by Standard & Poor's. Institutional pricing is expected Thursday.

Municipal bond scales ended on a mixed note Tuesday after a firmer session Monday.

Yields on the Municipal Market Data triple-A GO scale ended as much as one basis point higher. The 30-year yield increased one basis point to 2.93%. The 10-year yield finished flat at 1.72% for the third session and the two-year closed steady at 0.29% for the eighth session.

Yields on the Municipal Market Advisors 5% coupon triple-A benchmark scale ended mixed, with some yields rising and some yields falling as much as one basis point in either direction. The 10-year was steady at 1.78% for the second session and the 30-year was flat at 3.05% for the third session. The two-year was flat at 0.32% for the eighth session.

Treasuries were mostly steady Wednesday morning. The two-year and benchmark 10-year yields were flat at 0.23% and 1.72%, respectively. The 30-year yield fell two basis points to 2.89%.

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