The tax-exempt market saw light trading volume Wednesday with an overall weaker tone as the biggest deals of the week priced in the primary.
"It's a frustrating market," a New York trader said. "It's difficult to tell where things should trade." This trader said the market traded two to four basis points weaker.
In the general market Wednesday, JPMorgan priced for retail the largest deal of the week, $955.9 million of Dormitory Authority of the State of New York sales tax revenue bonds, rated AAA by Standard & Poor's and AA by Fitch Ratings. Institutional pricing is expected Thursday.
By Tuesday afternoon, retail had placed $400 million of orders.
Yields ranged from 0.53% with 3% and 5% coupons in a split 2016 maturity to 4.68% with a 4.625% coupon in 2043. Bonds maturing in 2015 were offered via sealed bid. Portions of bonds maturing between 2025 and 2043 were not offered for retail. The bonds are callable at par in 2023.
Citi priced for retail $360.1 million of triple-A Battery Park City Authority senior revenue bonds. Institutional pricing is expected later Wednesday.
Yields on the first series of $353.2 million of tax-exempt bonds ranged from 0.41% with 2% and 3% coupons in a split 2015 maturity to 4.05% with a 4% coupon in 2031. The bonds are callable at par in 2023.
The second series of $6.9 million of taxable bonds were offered via sealed bid.
On Tuesday, yields on the triple-A Municipal Market Data scale ended as much as five basis points higher. The 10-year yield rose two basis points to 2.62% and the 30-year yield jumped five basis points to 4.23%. The two-year was steady at 0.35% for the third session.
Yields on the Municipal Market Advisors benchmark scale ended as much as four basis points higher. The 10-year yield increased two basis points to 2.77% and the 30-year yield climbed four basis points to 4.37%. The two-year was unchanged at 0.55% for the fifth session.
Treasuries were firmer on news the Senate reached a deal to avoid hitting the debt ceiling limit. The benchmark 10-year yield slid four basis points to 2.69% and the 30-year yield fell five basis points to 3.74%. The two-year yield fell two basis points to 0.35%.
