NEW YORK – Despite weaker Treasuries and several deals in the primary market Wednesday, munis are continuing to hold their own and remain firm.

“The market remains firm and well-bid despite the dramatic decrease in yields that we’ve seen to start the year,” said a trader in New York. “Overall activity in the market appeared a little lighter today, as some significant new issues drew investor and dealer focus.”

He added that despite a slight weakening in Treasuries, munis are not drifting. “With a holiday-shortened week and limited supply for at least the rest of the week, these themes appear poised to continue for the next few trading sessions.”

Munis continued to firm Wednesday early afternoon, according to the Municipal Market Data scale. Yields inside the two-year were steady while yields outside three years fell between one and three basis points.

On Tuesday, the two-year closed steady at 0.35% for its third consecutive trading session. The 10-year yield closed down two basis points to 1.69%, beating the previous record of 1.71% as recorded by MMD Friday. The 30-year dropped three basis points to 3.17%, beating the previous record of 3.20% registered on Friday.

Treasuries continued to weaken in afternoon trading. The benchmark 10-year yield and the 30-year yield rose three and four basis points to 1.88% and 2.93%, respectively. The two-year yield remained at 0.23%.

In the primary market Citi priced $463 million of Massachusetts new and refunding general obligation SIFMA index bonds, a surprise deal added to the calendar Tuesday. Pricing information was not available by press time.

Morgan Stanley priced $166.25 of Massachusetts Municipal Wholesale Electric Company power supply project revenue bonds in five series.

The first series, $7.52 million of nuclear mix bonds, is rated A-plus by Standard & Poor’s and Fitch Ratings. Bonds maturing in 2012 were offered via sealed bid. Bonds maturing in 2013 yielded 0.64% with a 4% coupon.

The second series, $6.12 million of nuclear project bonds, yielded 0.64% with a 3% coupon in 2013. Bonds maturing in 2012 were offered via sealed bid.

The third series, $35.54 million of nuclear project bonds, had yields of 0.64% with a 5% coupon in 2013, 0.91% with a 5% coupon in 2014, and 1.10% with a 5% coupon in 2015. Bonds maturing in 2012 were offered via sealed bid.

The fourth series, $11.32 million of nuclear project bonds, is rated A by Standard & Poor’s and A-plus by Fitch. Yields were 0.64% with a 5% coupon in 2013, 0.91% with a 5% coupon in 2014, and 1.10% with a 5% coupon in 2015. Bonds maturing in 2012 were offered via sealed bid.

The fifth series, $105.75 million of nuclear project bonds, is rated A-minus by Standard & Poor’s and A-plus by Fitch. Yields ranged from 0.79% with a 5% coupon in 2013 to 1.31% with a 5% coupon in 2016. Bonds maturing in 2012 were offered via sealed bid.

Morgan Stanley also repriced $129 million of Metropolitan Government of Nashville and Davidson County water and sewer revenue refunding bonds. The credit is rated A1 by Moody’s Investors Service and A-plus by Standard & Poor’s.

Yields ranged from 0.39% with a 3% coupon in 2013 to 2.46% with a 5% coupon in 2023. Bonds maturing in 2012 were not formally reoffered. The debt is callable at par in 2022. Prices were bumped up five to 15 basis points across the curve from preliminary pricing.

On the competitive calendar, JPMorgan won the bid for $400 million Port Authority of New York and New Jersey revenue bonds, rated Aa2 by Moody’s and AA-minus by Standard & Poor’s. Details were not available.

Citi won the bid for $220 million Fairfax County, Va., general obligation bonds, rated triple-A by Moody’s and Standard & Poor’s. Pricing information was not available.

In the secondary market, trades reported by the Municipal Securities Rulemaking Board on Wednesday showed large gains from just a week ago.

Bonds from an interdealer trade of California 5s of 2041 yielded 4.08%, 19 basis points lower than where they traded last Wednesday. Bonds from another interdealer trade of Georgia 4.5s of 2028 yielded 2.60%, 19 basis points lower than where they traded a week ago.

Bonds from an interdealer trade of North Carolina Turnpike Authority 5s of 2029 yielded 2.80%, 12 basis points lower than where they traded last Wednesday. Bonds from an interdealer trade of Sharyland, Texas, Independent School District 5s of 2025 yielded 2.31%, nine basis points lower than where they traded a week ago.

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