The tax-exempt market ended on a mostly flat note Tuesday as the majority of new issues were received very well and bonds in the secondary market traded steady.

Traders noted that while the attention was on the primary, the secondary stayed fairly active.

“The market is in good shape,” a New Jersey trader said. “There is more trading in the secondary and everything seems strong. There are names circulating.”

In the new-issue market, retail order periods were received well and continue to price well Tuesday. “Institutional pricing for most of the deals are oversubscribed and are both bumped on large and small deals,” the trader added. “So the market continues to grind.”

Overall, the market has a different tone to it depending on if traders look at the primary or secondary. “It’s a really bifurcated market,” he noted. “It’s bifurcated between new issues and the secondary and that’s bifurcated between retail and institutions. So there is not much change if you’re looking in the secondary, but if you’re buying new issues, the market looks strong.”

Others agreed that while the attention remained on the primary, there were noticeable trades in the secondary. “It’s somewhat busy,” a secondary institutional New York trader said. “Munis are following Treasuries weaker by a tad but nothing special.”

In the primary market, Wells Fargo Securities priced for institutions $958.2 million of New York’s Metropolitan Transportation Authority dedicated tax fund refunding bonds, rated AA by Standard & Poor’s and AA-minus by Fitch Ratings.

Yields on the first series, $895.2 million of current interest bonds, ranged from 0.17% with a 2% coupon in 2013 to 3.07% with a 4% coupon and 2.76% with a 5% coupon in a split 2031 maturity. The bonds are callable at par in 2022. Yields were lowered as much as 13 basis points from retail pricing Monday.

Bonds in the second series, $63 million of capital appreciation bonds, had a yield to maturity of 3.45% in 2030 and 3.55% in 2032. Yields were lowered seven basis points on the 2032 maturity.

Bank of America Merrill Lynch priced $233.2 million of Municipal Electric Authority of Georgia bonds.

The first series, $139.8 million of project one power revenue bonds, is rated A1 by Moody’s Investors Service and A-plus by Standard & Poor’s and Fitch. Yields ranged from 0.44% with a 4% coupon in 2014 to 3.47% with a 5% coupon in 2043. The bonds are callable at par in 2023.

The second series, $44.9 million of project one subordinated bonds, is rated A2 by Moody’s, A by Standard & Poor’s, and A-plus by Fitch. The bonds yielded 1.89% with a 4% coupon in 2020, 2.13% with a 4% coupon in 2021, and 2.31% with a 5% coupon in 2022.

The third series, $48.5 million of general resolution senior general power revenue bonds, is rated A1 by Moody’s and A-plus by Standard & Poor’s and Fitch. Yields ranged from 0.44% with a 3% coupon in 2014 to 3.84% with a 3.75% coupon in 2039. The bonds are callable at par in 2023.

B of A Merrill also priced for institutions $136.7 million of Mississippi general obligation bonds, rated Aa2 by Moody’s, AA by Standard & Poor’s, and AA-plus by Fitch.

Yields ranged from 1.22% with a 3% coupon in 2019 to 3.22% with a 3.125% coupon in 2032. The bonds are callable at par in 2022. Yields were unchanged from Monday’s retail pricing.

In the competitive market, the District of Columbia auctioned $675 million of fiscal year 2013 general obligation tax revenue anticipation notes, rated MIG-1 by Moody’s, SP-1-plus by Standard & Poor’s, and F1-plus by Fitch.

JPMorgan won the bid for $525 million and yielded 0.19% with a 2% coupon. B of A Merrill won the bid for $100 million and yielded 0.18% with a 2% coupon. Morgan Stanley bought $50 million and yielded 0.19% with a 2% coupon.

In the secondary market, trades compiled by data provider Markit showed mostly weakening. Yields on Ohio 4s of 2030 spiked up five basis points to 2.76% while Midland County, Texas, Fresh Water Supply District 5s of 2031 jumped three basis points to 2.96%.

Yields on California 4s of 2037 and New York City Municipal Water Finance Authority 5s of 2044 rose one basis point each to 3.92% and 3.20%, respectively.

Still, other trades showed firming. Yields on New Hampshire Turnpike System 4s of 2029 dropped four basis points to 3.01% while New Jersey Turnpike Authority 5s of 2021 fell three basis points to 1.99%.

On Tuesday, the Municipal Market Data scale showed weakening. The 10-year yield jumped two basis points to 1.71% while the 30-year yield increased one basis point to 2.83%. The two-year was steady at 0.30% for the 15th consecutive trading session.

Treasuries were much weaker Tuesday. Then benchmark 10-year yield spiked up five basis points to 1.72% while the 30-year yield jumped seven basis points to 2.92%. The two-year yield rose one basis point to 0.27%.

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