As the end of April approaches and traders wait for May 1 coupon payments to come due, the muni market took a pause.
"It's been a slow couple of days," a Chicago trader said. "Feels like end of the month lull and people are waiting for money to come due and into their accounts on the first."
This trader said because of the light activity, the market felt flat. "If it's not flat, it's weaker. But with this activity it looks flat."
In the primary, Rice Financial is expected to price $333.5 million of Houston, Texas, tax-exempt and taxable public improvement refunding bonds, rated AA by Standard & Poor's and Fitch Ratings.
Bank of America Merrill Lynch is expected to price $235 million of Bay Area Toll Authority toll bridge revenue bonds, rated Aa3 by Moody's Investors Service, AA by Standard & Poor's, and AA-minus by Fitch.
FirstSouthwest priced $148.4 million of taxable and tax-exempt Lubbock, Texas, GOs. The bonds are rated Aa2 by Moody's and AA-plus by Standard & Poor's and Fitch.
The tax-exempt portion of $108.6 million was divided into two series. Yields on the first series of $61.3 million of GO refunding and improvement bonds, ranged from 0.57% with a 2% coupon in 2016 to 3.51% with a 3.375% coupon in 2033. Credits maturing between 2013 and 2015 were offered via sealed bid. The bonds are callable at par in 2023.
Yields on the second series, $47.4 million of tax and waterworks system surplus revenue certificates of obligation, ranged from 0.57% with a 3% coupon in 2016 to 2.99% with a 5% coupon in 2033. Bonds maturing in 2014 and 2015 were offered via sealed bid. The bonds are callable at par in 2023.
The taxable portion of $39.7 million had maturities that ranged from 2013 to 2021 with spreads of 35 basis points to 66 basis points above the comparable Treasury yield.
Municipal bond scales ended steady to one basis point weaker Tuesday after a mostly steady session Monday.
Yields on the Municipal Market Data 5% triple-A GO scale ended flat. The 10-year was steady at 1.70% for the fifth session and the 30-year closed unchanged at 2.90% for the third trading session. The two-year closed steady at 0.29% for the 13th session.
Yields on the Municipal Market Advisors 5% scale ended flat to one basis point higher. The 10-year was flat at 1.76% and the 30-year closed unchanged at 3.02% for the fourth session. The two-year was flat at 0.32% for the 13th session.
The Treasury yield curve continued to steepen Wednesday afternoon. The benchmark 10-year and 30-year yields fell one basis point each to 1.70% and 2.89%, respectively. The two-year yield increased one basis point to 0.24%.