The tax-exempt market opened on a quiet note Monday morning as traders waited for Jefferson County, Ala., to issue a second retail pricing for $1.8 billion of sewer revenue bonds.

"It's a trade-by-appointment day," a Chicago trader said, adding that outside the Jefferson County and $1.5 billion Port Authority of New York and New Jersey deals, supply is relatively light this week. "Refundings are off the table and it doesn't feel like big supply is going to happen. Outflows have come. People are going to boutique shops and the big funds are down."

Citi is expected to price a second retail order period for $1.8 billion of Jefferson County sewer revenue warrants. Institutional pricing is expected Tuesday.

The senior lien bonds are rated BBB by Standard & Poor's and BB-plus by Fitch Ratings. The senior lien series carries insurance from Assured Guaranty Municipal Corp. and ratings of A2 from Moody's Investors Service and AA-minus from Standard & Poor's. The subordinate bonds are rated BBB-minus by Standard & Poor's and BB by Fitch.

In the first retail pricing Friday, the first series of $375 million of senior lien sewer revenue current interest warrants were priced at par to yield 5.5% in 2044, 5.625% in 2048, and 5.75% in 2053. Portions of bonds maturing in 2044, 2048, and 2053 were not offered for retail. The bonds are callable at par in 2023.

The second series of $55 million of senior lien sewer revenue capital appreciation warrants yielded from 6% in 2025 to 6.875% in 2036. Portions of bonds maturing between 2026 and 2035 were not offered for retail.

The third series of $70 million of senior lien sewer revenue convertible capital appreciation warrants yielded 6.5% in 2038 and 6.625% in 2042.

Yields on the fourth series of $837.4 million of subordinate lien sewer revenue current interest warrants ranged from 2.75% with a 5% coupon in 2015 to 6.5% priced at par in 2053. Portions of bonds maturing in 2042, 2051, and 2053 were not offered for retail. The bonds are callable at par in 2023 except those maturing in 2051 which are callable at par in 2018.

The fifth series of $56.4 million of subordinate lien sewer revenue capital appreciation warrants yielded 7.5% in 2028, 7.875% in 2033, and 8% in 2036. Portions of bonds maturing between 2029 and 2037 were not offered for retail.

The sixth series of $402.2 million of subordinated lien sewer revenue convertible capital appreciation warrants yielded 7.5% in 2044. Bonds maturing in 2039, 2047, and 2050 were not offered for retail.

On Friday, the triple-A Municipal Market Data scale ended steady to one basis point stronger. The 10-year was steady at 2.61% and the 30-year yield was flat at 4.13%. The two-year closed unchanged at 0.33%.

Yields on the Municipal Market Advisors benchmark scale ended as much as five basis points stronger in the 10-year to 15-year spot of the curve. The two-year yield slid two basis points to 0.39% and the 10-year yield fell one basis point to 2.69%. The 30-year was steady at 4.33%.

Treasuries were stronger Monday morning. The 10-year and 30-year yields fell three basis points each to 2.68% and 3.77%, respectively. The two-year yield fell one basis point to 0.29%.

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