The tax-exempt market started to reverse last week's softer tone with a small amount of buying activity Monday afternoon.
Though yields were raised on Massachusetts's second retail order period in the morning, a few buyers emerged as the day progressed.
"Yields are a bit lower but I haven't seen much change in activity," a New York trader said.
In the primary, Bank of America Merrill Lynch held a second day of retails on $957.7 million of Massachusetts bonds following Friday's initial retail pricing. The bonds are rated Aa1 by Moody's Investors Service and AA-plus by Standard & Poor's and Fitch Ratings.
Bonds on the first series, $400 million of general obligation bonds, were priced at par to yield 4% in 2043. Portions of bonds maturing between 2039 and 2043 were not offered for retail. The bonds are callable at par in 2021. Yields were raised five basis points on the 2043 maturity from Friday's retail pricing.
Bonds on the second series, $100 million of GO green bonds, yielded 3.85% with a 3.75% coupon and 3.67% with a 4% coupon in a split 2033 maturity. Portions of bonds maturing in 2022 were not offered for retail. The bonds are callable at par in 2021. Yields were raised five basis points from Friday's retail.
Yields on the third series, $457.7 million of GO refunding bonds, ranged from 0.64% with 4% and 5% coupons in a split 2016 maturity to 2.39% with 3% and 5% coupons in a split 2023 maturity. Bonds maturing in 2013 were offered via sealed bid. The bonds are callable at par in 2023. Yields were raised between five and eight basis points from the first pricing.
Friday, yields on the Municipal Market Data scale ended as much as two basis points higher. The 10-year and 30-year yields rose two basis points each to 2.09% and 3.24%, respectively. The two-year finished flat at 0.29% for the sixth session.
Yields on the Municipal Market Advisors 5% scale also ended as much as two basis points higher. The 10-year and 30-year yields rose two basis points each to 2.14% and 3.34%, respectively. The two-year finished steady at 0.36% for the third session.
Treasuries started to par some of the morning gains. The 10-year and 30-year yields slid two basis points each to 2.14% and 3.28%, respectively. The two-year was steady at 0.31%.