The tax-exempt market traded on a firmer tone Thursday as traders said bonds priced in the primary earlier in the week traded higher in the secondary.
"The market seems firmer today," a New Jersey trader said. "There is still sporadic retail trading and there is not much secondary movement, but the market is relatively firm today."
He added that the $435 million New York City Municipal Water Finance Authority bonds that priced Wednesday traded higher in the secondary Thursday. "The water bonds traded up today."
Overall the market is two to four basis points stronger.
In the primary market Thursday, Bank of America Merrill Lynch priced for institutions $527.3 million of Los Angeles Department of Water and Power revenue bonds, rated Aa3 by Moody's Investors Service and AA-minus by Standard & Poor's and Fitch Ratings.
Yields ranged from 0.41% with a 1% coupon in 2015 to 3.10% with a 3% coupon in 2031. Bonds maturing in 2013 and 2014 were offered via sealed bid. The bonds are callable at par in 2023.
Goldman, Sachs & Co. priced $176.7 million of Tarrant County Cultural Education Facilities Finance Corp. hospital revenue bonds, rated A1 by Moody's, A by Standard & Poor's, and AA-minus by Fitch.
Yields ranged from 0.70% with a 5% coupon in 2015 to 4.10% with a 4% coupon and 3.78% with a 5% coupon in a split 2043 maturity. The bonds are callable at par in 2023.
Morgan Stanley priced $104.9 million of New York City Housing Development Corp. multi-family housing revenue bonds, rated Aa2 by Moody's and AA by Standard & Poor's.
Bonds in the first series, $102.8 million, were priced at par to yield from 0.30% and 0.35% in a split 2013 maturity to 4.00% in 2044. The bonds are callable at par in 2022.
Bonds in the second series, $2.1 million subject to the alternative minimum tax, were priced at par to yield from 2.30% and 2.35% in a split 2019 maturity to 3.60% in 2026. The bonds are callable at par in 2022.
In the competitive market, JPMorgan won the bid for $225 million of triple-A rated Delaware GOs. Pricing details were not available by press time.
RBC Capital Markets won the bid for $146.6 million of New York's Nassau County GOs, rated A2 by Moody's and A-plus by Standard & Poor's and Fitch. Prices were not yet available.
Municipal bond market scales finished weaker Wednesday.
Yields on the Municipal Market Data triple-A GO scale jumped across the curve. The 10-year yield increased five basis points to 1.90% while the 30-year yield rose four basis points to 2.92%. The two-year was steady at 0.31% for the second session.
The Municipal Market Advisors 5% coupon triple-A benchmark scale ended weaker. The 10-year yield jumped three basis points to 1.90% while the 30-year yield rose four basis points to 3.03%. The two-year closed unchanged at 0.35% for the 17th session.
Treasuries continued to post gains Thursday afternoon. The benchmark 10-year yield plunged six basis points to 1.96% while the 30-year yield dropped five basis points to 3.15%. The two-year yield fell two basis points to 0.25%.
