The tax-exempt market remained relatively quiet Tuesday morning though traders said the market was a little softer.
"Munis are quiet but weaker by a few basis points," a New York trader said. "Treasuries are down and equities are up. The focus is not on munis right now."
In the primary market, Barclays is expected to price $208.1 million of Phoenix Civic Improvement Corporation senior lien airport revenue refunding bonds, subject to the alternative minimum tax. The bonds are rated Aa3 by Moody's Investors Service and AA-minus by Standard & Poor's.
Bank of America Merrill Lynch is expected to price $150 million of Arizona Health Facilities Authority variable rate revenue refunding bonds for the Phoenix Children's Hospital. The bonds are rated BBB-plus by Standard & Poor's.
In the competitive market, triple-A rated Prince George's County in Maryland is expected to auction $324.1 million of general obligation bonds in two pricings: a $137.6 million deal and $186.5 million series.
Municipal bond market reads showed a steady to slightly firmer market Monday after steady or small gains Thursday and Friday of last week.
Yields on the Municipal Market Data triple-A GO scale finished steady to one basis point lower. The 10-year and 30-year yields fell one basis point each to 1.81% and 2.85%, respectively. The two-year held at 0.34% for the sixth session.
The Municipal Market Advisors 5% coupon triple-A benchmark scale also showed mostly unchanged yields. The 10-year yield and the 30-year yield held at 1.84% and 2.94%, respectively, for the fourth consecutive trading session. The two-year closed unchanged at 0.35% for the sixth session.
Treasuries were weaker Tuesday, reversing all gains from Monday's trading session. The benchmark 10-year yield and the 30-year yield jumped four basis points each to 2.01% and 3.21%, respectively. The two-year yield increased one basis point to 0.27%.