Investment grade tax-exempt bonds showed small improvements Wednesday morning, following a firmer Treasury market, though high-yield bonds continued to drop in price.
Many of the week's largest deals priced Tuesday and more large deals should come to market Thursday, allowing for some breathing room in this morning's trading session. But buyers, hesitant of putting cash to work in the secondary, are also staying out of the primary. "Deals are struggling," a Chicago trader said. "The general market feels a little better but high-yield doesn't."