Following
But that doesn't mean the market's standing still. Participants report activity in trades of smaller size, as the market overall is slackening somewhat to get deals done.
"We got whacked on Friday," a trader in Chicago said. "We're all reeling, trying to figure out where we're at now. Consequently, I don't think there's been a lot of change. We're fairly flat. People are more active today; I'm getting more interest in my smaller pieces than I did last week."
New issuance, which continues to be slight compared with this time last year, isn't providing any direction. This week, $6.45 billion is expected to reach the market. This represents an increase from last week's revised $5.24 billion.
The industry expects to see $5.05 billion in negotiated deals, up from last week's revised $3.27 billion. On the competitive calendar, $1.40 billion should be auctioned, a decline from this week's revised $1.97 billion.
No deals top $400 million, however. A deal consisting of airport revenue improvement bonds for Dallas-Fort Worth International Airport, at $366.0 million, and a Los Angeles deal for wastewater system revenue bonds, at $344.4 million, should lead all issues.
The market is starting to weaken early Monday afternoon, according one market scale. Muni yields are mostly steady through 16 years on the curve; beyond that, they're flat to up to two basis points higher.
"But the general market is reasonably flat, maybe a smidge easier to get something done," the trader said. "But if you adjusted your levels from Friday to today, you're starting to see some business."
Yields on the Municipal Market Data triple-A GO scale finished as much as six basis points higher Friday. The 10-year and 30-year yields jumped six basis points each to 1.81% and 2.93%, respectively. The two-year was steady at 0.28% for the second session.
Yields on the Municipal Market Advisors 5% scale ended the week as much as five basis points higher. The 10-year and 30-year yields jumped five basis points each to 1.85% and 3.06%, respectively, on Friday. The two-year yield increased one basis point to 0.33%.
Treasury yields crossed into the afternoon higher past the front end of the curve. The benchmark 10-year yield has inched up two basis points to 1.92%, after jumping eight basis points on Friday.
The 30-year yield has risen three basis points to 3.13%, after vaulting 11 basis points on Friday. The two-year yield remains at 0.25%.
