The tax-exempt market showed signs of slowing Wednesday afternoon as many traders were away from the desks due to the Yom Kippur holiday.
Traders noted that while trading volume was down, the tone of the market was still firm.
“It’s a little stronger out there today and I think volume is surprisingly light given the Jewish holiday,” a Los Angeles trader said. “But California GO’s traded up this week and it seems like a decent market tone.”
In the primary market, Bank of America Merrill Lynch priced for retail $392 million of Port of Oakland, Calif., bonds, rated A2 by Moody’s Investors Service and A-plus by Standard & Poor’s and Fitch Ratings. Institutional pricing is expected Thursday. Pricing details were not available by press time.
“Levels look decent but I haven’t heard much,” the Los Angeles trader said, referring to the Oakland deal. “We’ve shown it out but it’s quiet from the holiday.”
In other primary market news, PNC Capital Markets
On Tuesday, the slope of the Municipal Market Data
Treasuries were stronger for a fourth consecutive session. The benchmark 10-year yield and the 30-year yield dropped four basis points each to 1.64% and 2.81%, respectively. The two-year was steady at 0.27%.