Municipal bond yields rose on Friday morning after selling off all week.
Yields for bonds maturing in six years and in 20 to 30 years increased by as much as one basis point, according to Municipal Market Data's triple-A scale. Yields for seven to 19 years jumped by up to two basis points.
"Things might need to back up a bit this week with yields," a trader in New Jersey said. "Yields might have to increase to get the smaller number of people in the office during the holiday week interested in the deals."
Yields had fallen for three straight days this week, starting on Tuesday. They dropped one basis point on the two-year, four basis points on the 10-year and five basis points on the 30-year from May 23 to Thursday's market close.
"The MMD has drifted down over the past week or so a few basis points, the market is a bit flat," a trader in New York said.
There are several large long-term deals scheduled to price next week, with the largest deal being $431.2 million certificates of participation from the Regional Transportation District of Colorado. The second biggest negotiated deal is the $340 million toll system refunding revenue bonds from the Miami-Dade, County Expressway Authority.
Los Angeles County is planning to sell $900 million tax and revenue anticipation notes on Wednesday.
In the competitive market the Metropolitan Atlanta Rapid Transportation Authority is scheduled to auction $274 million of revenue bonds on Thursday, and Columbus, Ohio, is expected to sell $258.3 million bonds on Wednesday.
Treasuries yields were mostly steady Friday morning, with the 30-year and the two-year remaining at 3.32% and 0.38%, respectively, from Thursday's market close. The 10-year benchmark rose two basis points to 2.48%.
