Market Post: Munis Open Tax Day on Slow Note

The municipal bond market opened "tax day" on a very quiet note as munis took a pause from Friday's small rally.

"It's dead," a New York trader said.

The primary market was well received last week and traders turned to this week's calendar, which is similar in size. In the primary market, $7.22 billion is expected to be priced this week, down slightly from last week's revised $7.51 billion. On the negotiated side, $6.46 billion should be issued, up from last week's revised $5.69 billion. In competitive deals, $760 million is expected to be auctioned, down from last week's revised $1.82 billion.

Municipal bond scales ended stronger Friday after weaker sessions earlier in the week.

Yields on the Municipal Market Data triple-A GO scale were as much as three basis points lower. The 10-year yield fell two basis points to 1.72% and the 30-year yield dropped three basis points to 2.94%. The two-year closed steady at 0.29% for the sixth session.

Yields on the Municipal Market Advisors 5% coupon triple-A benchmark scale ended as much as two basis points lower. The 10-year yield dropped two basis points to 1.79% and the 30-year yield slid one basis point to 3.05%. The two-year was steady at 0.32% for the sixth session.

Treasuries were steady to stronger Monday morning. The two-year and benchmark 10-year yields were flat at 0.23% and 1.72%, respectively. The 30-year yield slid two basis points to 2.90%.

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