The tax-exempt market traded firmer Tuesday as deals in the primary market were repriced with lower yields.
"Primary deals seem to be going OK," an Ohio trader said. "Deals are getting done at original levels with a few minor bumps on select maturities.
Goldman, Sachs & Co. priced $877.5 million of New Jersey Transportation Trust Fund Authority transportation system bonds. The bonds are rated A1 by Moody's Investors Service and A-plus by Standard & Poor's and Fitch Ratings.
The first part -- $539.3 million -- was tax-exempt. Yields ranged from 0.38% with 3% and 5% coupons in a split 2014 maturity to 2.60% with a 5% coupon in 2024. Bonds maturing in 2013 were offered via sealed bid. Yields were lowered as much as three basis points from preliminary pricing.
The second part -- $338.2 million -- was taxable. Bonds were priced 75 basis points in 2016 and 105 basis points in 2018 above the comparable Treasury yield.
Citi is expected to price $690 million of New Jersey Turnpike Authority turnpike revenue SIFMA floating rate notes, rated A3 by Moody's, A-plus by Standard & Poor's, and A by Fitch.
Monday, municipal bond scales ended stronger after a firmer session Friday.
Yields on the Municipal Market Data triple-A GO scale were as much as two basis points lower. The 30-year yield fell two basis points to 2.92%. The 10-year yield finished flat at 1.72% for the second session and the two-year closed steady at 0.29% for the seventh session.
Yields on the Municipal Market Advisors 5% coupon triple-A benchmark scale ended as much as one basis point lower. The 10-year yield fell one basis point to 1.78%. The 30-year was flat at 3.05% for the second session and the two-year was flat at 0.32% for the seventh session.
Treasuries continued to post losses Tuesday afternoon. The benchmark 10-year and 30-year yields jumped four basis points each to 1.73% and 2.92%, respectively. The two-year yield increased one basis point to 0.23%.