NEW YORK – The tax-exempt market was steady Wednesday morning ahead of several large deals expected to sell in the competitive market. Traders are also starting to close their books for the week as the holidays approach.
“It seems like traders want to get business done early,” a New York trader said. “The afternoon should see liquidity dry up.”
Munis were steady Wednesday morning, according to the Municipal Market Data scale. On Tuesday, the two-year yield finished steady at 0.36% for its 12th consecutive trading session while the 10-year yield and 30-year yield each rose three basis points to 2.16% and 3.42%.
Treasuries were stronger across the curve. The two-year yield fell two basis points to 0.35% while the benchmark 10-year yield and the 30-year yield each fell three basis points to 2.25% and 3.38%.
The competitive calendar will steal the show Wednesday as four big deals are expected to be priced.
The Port Authority of New York and New Jersey will take bids for $400 million of revenue bonds, rated Aa2 by Moody’s Investors Service and AA-minus by Standard & Poor’s and Fitch Ratings.
South Carolina Transportation Infrastructure Bank is expected to auction $270.7 million of revenue bonds.
Michigan is expected to sell $225 million of general obligations bonds.
Delaware Transportation Authority will take bids on $203 million of revenue bonds, rated Aa2 by Moody’s and AA-plus by Standard & Poor’s.
In the negotiated market, Bank of America Merrill Lynch is expected to price $269 million of Broward County, Fla., certificates of participation.