The tax-exempt market opened on a quiet note Tuesday as traders struggled to put money to work after a three-day holiday weekend.
Muni bond traders said the market was very quiet due to a combination of the three-day weekend and it being a big vacation week for schools.
"It's very quiet today," a New York trader said, adding a lot of traders are home as many schools are on winter break this week.
In the primary market this week, $6.67 billion is expected to be priced, up from last week's revised $5.92 billion. On the negotiated calendar, $4.42 billion should be issued, up from last week's revised $3.45 billion. In the competitive market, $2.25 billion is expected to be auctioned, down from last week's revised $2.47 billion.
In the primary Tuesday, Bank of America Merrill Lynch should price for retail $149.5 million of Georgia Housing and Finance Authority single family mortgage bonds, rated AAA by Standard & Poor's. Institutional pricing is expected Wednesday.
B of A Merrill is expected to price $115 million of triple-A rated Delaware general obligation refunding bonds. Institutional pricing is expected Wednesday.
In the competitive market, Harford County, Md., should auction $116.9 million of GOs in two pricings: $76.9 million and $40 million. The bonds are rated Aaa by Moody's Investors Service, AA-plus by Standard & Poor's and AAA by Fitch Ratings.
On Friday, municipal bond market scales finished steady to a basis point weaker.
The Municipal Market Data triple-A GO scale ended flat to one basis point lower. The 10-year yield rose one basis point to 1.85%. The 30-year was steady at 2.92% for the third session while the two-year was steady at 0.32% for the fifth session.
The Municipal Market Advisors 5% coupon triple-A benchmark scale ended steady Friday. The 10-year yield finished steady at 1.87% for the third session while the 30-year yield also closed flat for the third session at 2.99%. The two-year closed unchanged at 0.35% for the 15th session.
Treasuries were steady from Friday's levels. The benchmark 10-year yield and the 30-year yield were flat at 2.01% and 3.18%, respectively. The two-year traded even at 0.28%.