The tax-exempt market turned its attention to the primary as the biggest deals flooded in Wednesday.
"It's hard to get a real grasp of the secondary because all the focus is on the primary, unfortunately," a New York trader said. "Some of the deals that I was following seem like they are being priced to go and being bumped up so it seems like there is plenty of demand out."
He added because of the primary, the secondary was quiet. "It almost seems like another Monday. Tuesday was extremely quiet in the afternoon and today the focus is on the new issues. There was a fair amount of bid-wanteds this morning but that has died down."
The trader noted that the overall tone of the market was flat to weaker.
In the primary, Bank of America Merrill Lynch priced for retail $810.8 million of Dormitory Authority of the State of New York personal income tax revenue bonds, rated AAA by Standard & Poor's and AA by Fitch Ratings. Institutional pricing is expected Thursday.
Yields on the first series, $755.5 million of tax-exempt bonds, ranged from 0.31% with 2% and 5% coupons in a split 2014 maturity to 3.5% priced at par in 2037. Portions of credits maturing between 2021 and 2028, between 2030 and 2034, and in 2042 were not offered for retail. The bonds are callable at par in 2022. Credits maturing in 2022 are not callable.
Yields on the second series, $55.3 million of tax-exempt bonds, ranged from 0.36% with a 2.5% coupon in 2014 to 3.30% with a 5% coupon in 2037. The bonds are callable at par in 2022.
Jefferies & Co. priced for retail $727 million of Massachusetts School Building Authority senior dedicated sales tax refunding bonds, rated Aa1 by Moody's Investors Service and AA-plus by Standard & Poor's and Fitch. Institutional pricing is expected Thursday.
Yields ranged from 0.75% with 3% and 4% coupons in a split 2017 maturity to 3% priced at par in 2030. Portions of credits maturing between 2028 and 2030 were not offered for retail. The bonds are callable at par in 2022.
Barclays priced $700 million of City and County of Denver, Colo., Department of Aviation airport system revenue bonds, rated A1 by Moody's and A-plus by Standard & Poor's and Fitch. Prices were not yet available.
In the competitive market, Bank of America Merrill Lynch won the bid for $424.9 million of South Carolina Transportation Infrastructure Bank revenue refunding bonds, rated A1 by Moody's and A by Fitch.
Yields ranged from 0.40% with a 5% coupon in 2013 to 3.625% at par in 2033. The bonds are callable at par in 2022.
Maryland's Montgomery County auctioned $318 million of general obligation bonds in two pricings - a $295 million deal and a $23.2 million deal.
Citi won the bid for $295 million. Prices were not yet available.
JPMorgan won the bid for $23.2 million. Coupons ranged from 2.5% in 2013 to 5% in 2016. Prices were not yet available.
On Tuesday, the 10-year Municipal Market Data yield and the 30-year yield rose one basis point each to 1.70% and 2.87%, respectively. The two-year closed flat for the 10th session at 0.30%.
The 10-year yield now trades 10 basis points above its record low of 1.60% set July 26. The 30-year yield is up eight basis points from its record low of 2.79% hit July 25.
Treasuries were stronger Wednesday afternoon after weakening in the morning session. The benchmark 10-year yield dropped two basis points to 1.70% while the 30-year yield fell three basis points to 2.90%. The two-year was steady at 0.27%.