NEW YORK – The tax-exempt market continued to see little activity Tuesday morning as the primary market failed to excite buyers and Treasuries provided no direction.

“Munis are quiet,” an Atlanta trader said. “They seem firm a little and there is some activity going on but you have to figure that everyone is getting back from the holiday. So it’s quiet, but firm.”

According to the Municipal Market Data scale, munis were firmer Tuesday. On Friday, the 10-year yield and the 30-year yield finished steady for the fourth consecutive trading session at 1.83% and 3.14%. The two-year yield also closed flat at 0.33% for the fourth consecutive trading session.

The Treasury yield curve flattened. The two-year yield rose one basis point to 0.30%. The benchmark 10-year yield dropped two basis points to 1.72% while the 30-year yield fell one basis point to 2.83%.

In the primary market Jefferies & Co. priced for retail $242 million of Massachusetts Water Pollution Abatement Trust state revolving fund bonds in two parts - $146 million new money and $96 million of refunding bonds. The credit is rated triple-A from all three major rating agencies.

Yields on the $146 million portion ranged from 0.35% with a 2% coupon in 2014 to 4.00% with a 4% coupon in 2042. Credits maturing in 2013 were offered via sealed bid. The bonds are callable at par in 2020.

Yields on the $96 million were not available by press time.

In the secondary market, trades reported by the Municipal Securities Rulemaking Board showed firming over the past week.

A dealer sold to a customer New Jersey’s North Hudson Sewerage Authority 5.246s of 2032 at 5.03%, 14 basis points lower than where they traded a week prior.

Another dealer sold to a customer Lincoln, Neb., 5s of 2015 at 0.62%, 12 basis points lower than where they traded Thursday.

Bonds from an interdealer trade of New York City 5s of 2016 yielded 1.01%, nine basis points lower than where they traded Friday.

Bonds from an interdealer trade of Milwaukee County, Wis., 5s of 2013 yielded 0.34%, three basis points lower than where they traded a week before.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.