NEW YORK – The tax-exempt market continued to slug along Monday afternoon as traders noted activity was very quiet.
“Munis are very slow,” a New York trader said.
Munis remained steady early Monday afternoon, according to the Municipal Market Data scale, after finishing flat on Friday.
The two-year yield closed flat at 0.31% for the eighth consecutive trading session while the 30-year ended flat at 3.25% for the fifth consecutive trading session. The 10-year yield finished at 1.87% for the third consecutive session.
Treasuries were steady to slightly stronger. The benchmark 10-year yield fell two basis points to 1.92% while the 30-year yield fell one basis point to 3.11%. The two-year was steady at 0.27%.
In the primary market this week, $6.09 billion in new issuance is expected, down slightly from last week’s revised $6.1 billion. On the negotiated calendar, $5.37 billion is expected, up from last week’s revised $4.19 billion. In competitive offerings, $719.3 million is expected, down from last week’s revised $1.91 billion.
In the secondary market, trades reported by the Municipal Securities Rulemaking Board showed firming.
A dealer sold to a customer Central Plains, Neb., Energy Project 5.25s of 2037 at 4.76%, 12 basis points lower than where they traded Friday.
A dealer bought from a customer County of Allen, Ohio, Hospital Facilities 5s of 2042 at 4.19%, three basis points lower than where they traded Friday.
Bonds from an interdealer trade of Puerto Rico 5.5s of 2039 yielded 5.06%, two basis points lower than where they traded Friday.
Bonds from an interdealer trade of California 5.25s of 2040 yielded 3.93%, one basis point lower than where they traded Thursday.