The tax-exempt market showed small signs of weakening Thursday as traders noted balances leftover from deals put pressure on the market.
"Munis are giving up a little, but not much," a San Francisco trader said. "There is a little bit of sympathy to Treasuries but it's pretty muted."
He added that "when you put a billion-plus deal on the calendar, people notice. When you put two of them in the same week it creates a little paralysis. And this time there are balances. It's the first time in a while."
He added the balances leftover are not substantial, but the market is lacking a catalyst for further appreciation.
In the primary market, Stifel Nicolaus & Co. priced $265 million of California's Alameda Corridor Transportation Authority refunding bonds, rated A3 by Moody's Investors Service and A by Fitch Ratings. Pricing details were not yet available.
Goldman, Sachs & Co. priced $198.8 million of JEA Electric System revenue bonds.
The first series, $130.3 million of electric system revenue bonds, are rated Aa2 by Moody's, AA-minus by Standard & Poor's and AA by Fitch. Yields ranged from 0.37% with a 5% coupon in 2014 to 2.39% with a 5% coupon in 2026. Bonds maturing in 2013 were offered via sealed bid. The bonds are callable at par in 2022 except those maturing in 2024, 2025, and 2026 which are callable at par in 2018.
The second series, $68.5 million of electric system subordinated revenue bonds, are rated Aa3 by Moody's, A-plus by Standard & Poor's, and AA by Fitch. Yields ranged from 0.42% with a 5% coupon in 2014 to 2.98% with a 3% coupon in 2026. Bonds maturing in 2013 were offered via sealed bid. The bonds are callable at par in 2022 except for those maturing in 2024, 2025, and 2026 which are callable at par in 2018.
The Municipal Market Data scale ended mostly steady Wednesday after closing flat on Tuesday. The 10-year and 30-year yields finished steady for the fourth session at 1.67% and 2.72%, respectively. The two-year finished steady at 0.33% for the fifth session.
Treasuries continued to weaken Thursday afternoon. The two-year and benchmark 10-year yields increased one basis point each to 0.26% and 1.85%, respectively. The two-year yield jumped two basis points to 3.05%.