NEW YORK – The tax-exempt market continues to stay quiet Monday afternoon as traders say activity won’t pick up until new deals are priced.
“It’s a quiet Monday,” a New York trader said, adding he is looking at a few deals on the calendar later this week but is not participating in anything today.
Munis were weaker early Monday afternoon, according to the Municipal Market Data scale. Yields inside five years were steady while yields between six- and 22-years rose up to two basis points. Outside 23 years, yields were steady.
On Friday, the two-year yield ended at 0.26%, its record low first recorded by MMD on Feb. 16. The 10-year yield ended at 1.91% and the 30-year closed at 3.27%.
Treasuries were weaker across the curve. The two-year yield jumped two basis points to 0.30%. The benchmark 10-year yield and the 30-year yield rose one basis point each to 2.00% and 3.13%, respectively.
In the primary market Monday, M.R. Beal & Co. priced for retail $502.2 million of New York City Municipal Water Finance Authority water and sewer system second general resolution revenue bonds. The credit is rated Aa2 by Moody’s Investors Service and AA-plus by Standard & Poor’s and Fitch Ratings. Pricing information was not yet available.
Bank of America Merrill Lynch held its second day of retail on $150 million of Maryland general obligation bonds, rated triple-A by the three big rating agencies. Institutional pricing is expected Tuesday. Pricing details were not available.
Bank of America Merrill Lynch also priced for retail $112 million of Broward County, Fla., bonds, rated AAA by Moody’s and Fitch and AA-plus by Standard & Poor’s. Pricing was not available.
Citi priced $100 million of Vermont general obligation bonds, rated AAA by Moody’s and Fitch and AA-plus by Standard & Poor’s. Pricing was not available.
In the secondary market, trades reported by the Municipal Securities Rulemaking Board showed weakening.
Bonds from an interdealer trade of University of Texas 5s of 2023 yielded 2.33%, 12 basis points higher than where they traded a week before.
Bonds from an interdealer trade of Puerto Rico Aqueduct and Sewer Authority 5.25s of 2042 yielded 5.29%, four basis points higher than where traded the week prior.
Bonds from an interdealer trade of Illinois 6.9s of 2035 yielded 5.86%, one basis point higher than where they traded last week.
A dealer bought from a customer Puerto Rico Aqueduct and Sewer Authority 5.75s of 2037 at 4.98%, one basis point higher than where they traded last week.
