NEW YORK — A groggy municipal market still appeared listless by midday.
As retail order periods start to rev up for some of the week’s larger deals, the market’s sails still await the tailwinds such deals should provide to jumpstart activity and get yields moving. But the market appears firm, said a trader in Chicago.
“If you need to get something done, you’re going to pay the price,” he said. “It just seems like people are stuck in the mud; they’re not sure which way to turn. Consequently, we’re not seeing a lot of velocity. Trades that do occur seem to be fairly firm trades.”
At press time, the Municipal Market Data scale had yet to be updated. Tax-exempt yields started the day unchanged. The benchmark 10-year yield and the 30-year yield closed out Friday steady at 1.78% and 3.09%, respectively. The two-year yield lingered at 0.31% for the 23rd consecutive trading session.
For the week, the 10-year yield rose three basis points overall. Its yield remains 11 basis points above its record low of 1.67%, set Jan. 18.
The 30-year finished one basis point higher on the week. It stands just four basis points above its record low of 3.05%, set Monday.
Treasury yields crossed the midway point of the day’s session mixed. The benchmark 10-year Treasury yield climbed two basis points to 1.73%.
The 30-year yield, which finished flat on Friday, has budged little through the day and sits where it started, at 2.80%. The two-year yield slipped one basis point to 0.30%.
The secondary has been slow. Typically by midday, the trader in Chicago said he has at least eight pages of bids-wanted. Today he has one page.
“I’m just not seeing a whole lot of great stuff come across,” he said.
Despite what many traders perceive to be a holiday-shortened week, the industry expects a decent uptick in volume, with $9.19 billion expected to reach the primary. That compares with $6.83 billion that arrived last week.
Breaking the numbers down, $2.73 billion in competitive offerings is scheduled for sale, compared with a revised $1.70 billion last week. In addition, the industry expects $6.46 billion in negotiated deals slated for sale, against a revised $5.13 billion last week.
