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.
Trading volume in the muni market opened Wednesday at 21% below the average at 10:15 a.m., according to data from Bloomberg.
"MSRB volume hit $7.2 billion [Tuesday], an improvement over Monday's tepid pace, but still well below activity of recent Tuesdays," Janney Capital Markets said in a note Wednesday morning.
The biggest deal on the calendar for Wednesday is a $90 million general obligation competitive issue from Cache County, Utah. The bonds are rated AAA by Standard & Poor's Ratings and Moody's Investors Service.
Also expected to sell in the competitive market is $89.28 million of Nevada revenue bonds, rated AA2 by Moody's, AAA by Standard & Poor's and AA-plus by Fitch Ratings.
One of the week's biggest negotiated deals, $176 million of New Jersey Economic Development Authority Continental Airlines revenue bonds, led by Citigroup Global Markets, has yet to set a pricing date.
The largest negotiated deal slated for Wednesday is a Southwest Securities-led Woodland, Calif., sewer revenue refunding deal for just $35 million.
Yields according to Municipal Market Data were as much as two basis points lower Wednesday morning on the long end of the curve, 10 years and out. Bonds maturing from 2032 and in were steady to one basis point lower.
Treasury yields also firmed Tuesday, with the 30-year benchmark Treasury yield down one basis point to 3.66%, and the 10-year down one basis point to 2.70%. The two-year yield was up two basis points to 0.35%.
