The Federal Open Market Committee meeting minutes scheduled for release on Wednesday may shake the market, investors said.
Investors said the FOMC minutes will probably have an impact because there is limited economic data expected to come this week.
"I think the market always is looking at the FOMC minutes, especially given how data dependent meeting to meeting the [Federal Reserve's] status becomes," a trader in Virginia said. "And it's a fairly light economic data calendar this week so the minutes might be important."
After the June FOMC meeting the Fed announced it would continue to taper its asset purchases and keep the Fed funds rate between zero and 0.25%. It said that it was still concerned about the labor market and downgraded its GDP forecast.
After the June announcement, the market began to strengthen after selling-off or holding steady for the prior three days, according to Municipal Market Data.
A trader in New York said the FOMC minutes release may slow down or even soften the muni yield hike prompted by traders selling off Puerto Rico debt after the commonwealth's and several Puerto Rico organization's debt was downgraded in the wake of restructuring legislation.
The second and third largest competitive deals scheduled to come to market this week, Wisconsin's $254.8 million GOs and the Florida Department of Transportation's $240 million of revenue bonds are expected to be priced Wednesday.
Market participants said they are not really looking at new issuances this week, after a plethora of weighty highly publicized deals were sold in June.
"There's not really one big bellwether deal, most deals are in $250 million range," the trader in Virginia said.
