Oliver Renick

Bond Buyer indexes showed softening in the week ended March 13 as Treasury values climbed.

Secondary rallying on Puerto Rico's new term bonds slowed Thursday morning after initial buyers took immediate profits and exited their positions.

With the long-awaited bond issuance by Puerto Rico in the rearview mirror, municipal bond buyers Wednesday had more than $4 billion of new bonds to purchase.

While much of Puerto Rico's $3 billion general obligation bond issue Tuesday may be scooped up by nontraditional muni buyers such as hedge funds, retail investors in one case have actually been restricted from buying the island's new debt.

Puerto Rico may offer bonds maturing in 2035 at a yield from 8.625% to 8.875%, according to preliminary pricing information obtained from underwriters working on the deal, which is set to finalize pricing Tuesday. The $3 billion of bonds come with a coupon of 8%, according to the document, obtained by The Bond Buyer.

Bond Buyer indexes showed weakening in the week ending Feb. 27.

New bond issues were the focus of market participants Wednesday as municipal bonds followed Treasury weakening.

Municipal bonds weakened Wednesday morning after credit spreads at market closing time on Tuesday showed 10-year bonds were the most expensive in almost three years.

Triple-A general obligation bonds reached the most expensive level relative to Treasuries since 2011 as munis outperformed government bonds following signs of a pause in tension between Ukraine and Russia.

Trading activity in the municipal marketplace spiked Monday afternoon as rallying Treasuries and new retail bonds brought investors off the sidelines.

Municipal bond yields firmed Monday morning as buyers prepared for the first week of more than $5 billion of potential issuance since January.

Midterm elections to be held in the fall of 2014 are another force pushing against any potential resurgence in municipal bond issuance over the next year.

The municipal bond market opened Friday outperforming Treasuries as a lack of new bonds continued to hold yields at low levels.

Bond Buyer indexes showed significant strengthening in the week ending Feb. 27.

Traders in the municipal bond market hoping to get some relief from a few sizeable deals Thursday were left with little to choose from as two of the week’s largest new bond issues were postponed.

The largest deal this week, $227 million of Connecticut general obligation bonds, came to the competitive market Thursday, as bond traders anticipated some relief from thin market issuance.

Municipal bonds firmed Thursday morning following a report by the government that showed persisting economic woes.

A larger portion of new bond deals are being brought through competitive issuance as a lack of refundings keeps supply at a minimum.

A boost in activity in the municipal market Tuesday wasn't enough to bring trading volume up to average levels. With no new deals over $90 million scheduled for Wednesday, the market anticipated yet another lethargic trading day.

The municipal market got a breath of fresh air Tuesday as a smattering of issuance offered new money to investors.