Bid lists continued to surface Tuesday morning as selling pressure offset any small buying that was happening in the muni market.
The primary market picked up Tuesday as several deals issued pre-marketing wires and one of the largest deals priced for institutions following a fairly successful retail order period.
"It feels better but there are huge bid lists out there still," a New York trader said. "There is a lot of trading so the market feels better but the huge bid lists are concerning."
This trader added the New York State Environmental Facilities Corp. got $150 million in retail orders Monday. "I think it's a good sign the Environmentals did well. It's a good name that doesn't come out often and spreads are attractive. It could be a sign of things to come."
Tuesday morning, Citi priced for institutions $403.4 million of New York State Environmental Facilities Corp. state clean water and drinking water revolving funds for New York City Municipal Water Finance Authority projects. The bonds are rated Aaa by Moody's Investors Service, AAA by Standard & Poor's, and AA-plus by Fitch Ratings.
Yields ranged from 0.75% with 3% and 5% coupons in a split 2015 maturity to 4.46% with a 4.375% coupon and 4.35% with a 5% coupon in a split 2033 maturity. Bonds maturing in 2014 were offered via sealed bid. The bonds are callable at par in 2023.
Yields were raised as much as 15 basis points from retail pricing.
Monday, yields on the Municipal Market Data scale ended as much as 20 basis points higher. The 10-year and 30-year yields jumped 17 basis points each to 2.80% and 4.13%, respectively. The two-year yield increased 12 basis points to 0.55%.
Yields on the Municipal Market Advisors 5% scale closed as much as 19 basis points higher Monday. The 10-year jumped 18 basis points to 2.96% and the 30-year yield spiked 15 basis points to 4.23%. The two-year yield jumped eight basis points to 0.58%.
Treasuries were mostly stronger after four consecutive sessions of losses. The two-year and benchmark 10-year yields slipped two basis points each to 0.38% and 2.55%, respectively. The 30-year yield increased one basis point to 3.58%.