The tax-exempt market looked to a large slate of primary deals Thursday with most of the week's issuance expected to price amid an overall weakening market.
"It's slightly weaker I hear, but not as bad as the last couple days," a New York trader said.
In the primary market, JPMorgan is expected to price for institutions $500 million of New York's Metropolitan Transportation Authority revenue bonds, rated A2 by Moody's Investors Service and A by Standard & Poor's and Fitch Ratings.
In retail pricing Wednesday, about $150 million of the deal sold, market participants said.
Yields ranged from 0.55% with 2% and 4% coupons in a split 2015 maturity to 4.20% with a 4% coupon in 2043. Bonds maturing in 2013 and 2014 were offered via sealed bid. The bonds are callable at par in 2023 except bonds maturing in 2023.
RBC Capital Markets is expected to price $180 million of Clark County, Nev., airport system junior subordinate lien revenue notes, rated A2 by Moody's and A by Standard & Poor's.
Jefferies is expected to price $155 million of triple-A rated Virginia Resources Authority clean water state revolving fund bonds.
Yields on the Municipal Market Data scale ended Wednesday as much as eight basis points higher. The 10-year yield jumped eight basis points to 2.07% and the 30-year yield increased five basis points to 3.20%. The two-year finished flat at 0.29% for the fourth session.
Yields on the Municipal Market Advisors 5% scale ended as much as seven basis points higher. The 10-year yield jumped six basis points to 2.11% and the 30-year yield climbed five basis points to 3.31%. The two-year yield increased one basis point to 0.35%.
The Treasury yield curve continued to steepen. The two-year yield fell one basis point to 0.30% and the 30-year yield increased one basis point to 3.28%. The benchmark 10-year was steady at 2.13%.