The tax-exempt market got off to a strong and busy start Wednesday morning after a relatively quiet start to the week.
Market participants said activity was up in the secondary this morning after some large deals hit the primary market Tuesday.
"There is a bit of buying," a New York trader said. "And it's stronger."
In the primary market, Bank of America Merrill Lynch is expected to price $201 million of triple-A rated Connecticut State Revolving Fund general revenue bonds, following a retail order period Tuesday.
RBC Capital Markets is expected to price $111.4 million of District of Columbia student dormitory revenue bonds on behalf of Provident Group-Howard Properties LLC. The bonds are rated BBB-minus by Standard & Poor's.
In the competitive market, University of Minnesota Regents is expected to auction $89.5 million of general obligation bonds in two pricings - a $75.3 million deal and a $14.2 million deal.
Municipal bond market reads showed small losses after three sessions of steady to firmer gains.
Yields on the Municipal Market Data triple-A GO scale finished steady to one basis point higher. The 30-year yield rose one basis point to 2.86%. The 10-year yield finished flat at 1.81% while the two-year held steady at 0.34% for the seventh session.
The Municipal Market Advisors 5% coupon triple-A benchmark scale also showed steady to higher yields. The 30-year yield increased one basis point to 2.95%. The 10-year yield held steady at 1.84% for the fifth consecutive trading session while the two-year closed unchanged at 0.35% for the seventh session.
Treasuries were slightly stronger Wednesday morning after posting losses Tuesday. The two-year and 30-year yield fell one basis point each to 0.26% and 3.20%, respectively. The benchmark 10-year yield dropped two basis points to 1.99%.