Yields on tax-exempt bonds drifted higher Tuesday as inexpensive new deals by issuers including New York City dragged down prices in the secondary market.
Traders said high-yield and longer maturing bonds had the biggest price declines. “There are some pretty big high-yield bid-wanted lists out there,” a New York trader said. “And a lot of bids-wanted out there on the long end. There is probably not much July 15 coupon money left either and munis in general are taking a big hit.”