After many deals in the primary market priced Monday, the tax-exempt market showed signs of weakening Tuesday morning as traders worried about market sentiment.
"Bid-wanteds are getting worse bids today," a New York trader said. "The market is weaker. We are waiting on new deals and another storm is coming," referring to the nor'easter expected to hit the East Coast Wednesday.
"The Connecticut deal was priced cheap and the MTA and Triborough will come real cheap and drag the market down. Pricing could be bad because of the storm."
On Monday, the Municipal Market Data scale was steady to firmer. The 10-year and 30-year yields fell one basis point each to 1.72% and 2.81%, respectively. The two-year finished steady at 0.30% for the 29th consecutive trading session.
Treasuries were weaker as stocks gained. The benchmark 10-year yield jumped two basis points to 1.70% while the 30-year yield increased three basis points to 2.89%. The two-year yield increased one basis point to 0.28%.