NEW YORK — The municipal market crossed noon Monday with some new issuance reaching the retail order period and moderate activity in the secondary.
Traders said the largest new deals start to price Tuesday. Getting a read on the week won’t happen until they do, a trader in New York said.
The market otherwise seems largely unchanged from last week. There currently are no bid-lists of any size out, the trader added.
“It’s pretty orderly today,” he said. “We’ve got a pretty good supply this week, so we’ll see how this supply gets digested. Supposedly, there’s a fair amount of cash waiting on the sidelines for this supply. We’ll find out if it’s really there.”
By press time, the Municipal Market Data scale had yet to be updated. Earlier in the day, munis were steady across the curve.
The benchmark 10-year muni yield ended the week flat at 2.66% for the fourth straight day, 32 basis points beneath its average for 2011. The two-year yield maintained a 0.40% yield for a fourth consecutive day, its low for 2011.
The 30-year yield climbed two basis points to 4.32%, 30 basis points under its average for the year.
Treasury yields headed into the afternoon weaker across the curve. The 10-year yield rose one basis point to 2.92%.
The two-year yield inched up one basis point to 0.37%. The 30-year yield increased four basis points to 4.29%.
This week should be the largest for new bonds seen this year in the primary market. New issues are expected to total $8.27 billion, against a revised $5.71 billion last week.
In negotiated deals on the day, Morgan Keegan priced $123.8 million Frisco, Texas, general obligation refunding and improvement bonds. The bonds are rated Aa1 by Moody’s and AA by Standard & Poor’s.
Yields range from 0.50% with a 2.00% coupon in 2013 to 4.38% with a 4.25% coupon in 2031. Debt maturing in 2012 and 2014 was offered in a sealed bid.
Raymond James & Associates priced for retail $150.4 million of Tampa Bay Water utility system refunding revenue bonds. The bonds are rated Aa2 by Moody’s Investors Service, as well as AA-plus by Standard & Poor’s and Fitch Ratings.
Yields range from 0.20% with a 2.00% coupon in 2011 to 2.80% with a 5.00% coupon in 2019.
