Some of the week's largest issues priced in the primary Monday as borrowers took advantage of a relatively light primary calendar to greet July 1 reinvestment money.
Municipal bonds traders said the market had calmed significantly from last week's volatile sessions, though few bonds were actually trading.
"Things are definitely calmer," a New Jersey trader said. "The bid-to-offer is still wide although not as wide as last week. Only six to seven percent of items out for the bid are trading."
July 1 reinvestment money should help support the market, he said. "There are huge redemptions this month, especially today. A lot of bonds are getting called, there is money to be spent, and I would think that bumps the market up in the short term."
Monday, Citi issued a premarketing wire for $663.8 million of Louisiana Tobacco Settlement Financing Corp. asset-backed refunding bonds, rated BBB-plus by Standard & Poor's and Fitch Ratings.
Yields ranged from 1.32% with a 5% coupon in 2016 to 5.35% with a 5.25% coupon in 2035. Bonds maturing between 2024 and 2035 are callable at par between 2015 and 2023. Spreads ranged from 50 basis points to 170 basis points over Friday's Municipal Market Data scale.
RBC Capital Markets priced for retail $384.3 million of Bi-State Development Agency of the Missouri-Illinois Metropolitan District combined lien mass transit sales tax appropriation refunding bonds, rated Aa3 by Moody's Investors Service and AA-plus by Standard & Poor's.
Yields ranged from 0.35% with a 3% coupon in 2014 to 4.792% with a 4.75% coupon in 2052. The bonds are callable at par in 2022 except for those maturing in 2028, 2046, 2048, 2050, and 2052 which are callable at par between 2014 and 2018.
RBC Capital Markets priced for retail $336.3 million of New York's Metropolitan Transportation Authority revenue bonds, A2 by Moody's and A by Standard & Poor's and Fitch. Institutional pricing is expected Tuesday.
Yields ranged from 0.45% with a 4% coupon in 2014 to 4.70% with a 5% coupon in 2043. The bonds are callable at par in 2023. Bonds maturing in 2013 were offered via sealed bid.
Ramirez & Co. priced for retail $111.9 million of triple-A Ohio Water Development Authority revenue bonds. Yields ranged from 1.67% with a 5% coupon in 2018 to 2.84% with a 5% coupon in 2023. Bonds maturing in 2013 and 2014 were offered via sealed bid. The bonds were priced 24 basis points to 34 basis points above the Municipal Market Data scale.
Friday, yields on the Municipal Market Data scale ended steady across the curve. The 10-year and 30-year yields were steady at 2.56% and 3.83%, respectively. The two-year was flat at 0.50% for the third session.
Yields on the Municipal Market Advisors scale ended as much as two basis points lower. The two-year yield fell two basis points to 2.72% and the 30-year yield fell one basis point to 3.95%. The two-year was steady at 0.53% for the second session.
Treasuries were stronger Monday afternoon. The benchmark 10-year and 30-year yields slipped three basis points each to 2.48% and 3.49%, respectively. The two-year yield fell one basis point to 0.35%.