NEW YORK – Activity in the tax-exempt market was quiet Monday afternoon as traders waited for new deals to come later in the week.
“Munis are kind of dead,” a New York trader said. “There are lots of new issues coming that traders are waiting for.”
The Municipal Market Data scale was not updated by press time. But in Monday morning trading, munis were firmer. Yields inside seven years were steady while the eight-year to 12-year yields fell up to two basis points. The 13- to 16-year yields were steady while yields outside 17 years fell up to two basis points.
On Friday, the two-year yield ended steady at 0.26%, its record low as recorded by MMD on Feb. 16. The 10-year yield fell one basis point to 1.87% while the 30-year yield fell two basis points to 3.25%.
Treasuries continued to firm from Friday’s levels. The two-year yield fell two basis points to 0.30%. The benchmark 10-year yield and the 30-year yield dropped six basis points each to 1.93% and 3.05%, respectively.
In the primary market, Bank of America Merrill Lynch priced for retail $138.8 million of Maine Turnpike Authority revenue bonds, rated Aa3 by Moody’s Investors Service and AA-minus by Standard & Poor’s and Fitch Ratings.
The first series, $68.8 million of Series 2012A turnpike revenue bonds, will be used for general turnpike projects, including park and ride lots and bridge reconstruction. Prices were not available by press time.
The second series, $70 million of Series 2012B revenue refunding bonds, will refund the authority’s Series 2003 and 2004 revenue bonds. Pricing information was not yet available.
In the secondary market, trades reported by the Municipal Securities Rulemaking Board showed firming.
Bonds from an interdealer trade of Campbell County, Tenn., 5.8s of 2031 yielded 3.93%, 11 basis points lower than where they traded last Thursday.
A dealer bought from a customer Clark County, Nev., Airport System 5s of 2023 at 2.83%, seven basis points lower than where they traded last Thursday.
Bonds from an interdealer trade of Delaware Economic Development Authority 5s of 2036 yielded 3.82%, five basis points lower than where they traded Friday.
Bonds from another interdealer trade of Port of Seattle 5s of 2033 yielded 3.53%, two basis points lower than where they traded Friday.
