Muni yields headed higher Wednesday, reversing Tuesday’s gains, as the market softened after the New York City Housing Development Corp. sold nearly $700 million in revenue bonds, the last major deal of the week.

Traders said the market felt better in the morning as the New York housing deal  priced, but turned softer as Treasuries worsened throughout the trading session and investors worried about muni fund outflows and Puerto Rico’s debt burden.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.