The bulk of new issues slated for pricing this week came Wednesday, as issuers moved to get deals done before a winter storm hits the northeastern region Thursday.
Reception in the market was solid, traders said, even as buyers found some deals to be aggressively priced. With a total calendar of just $2.56 billion expected this week, new deal pricings are likely to favor the issuer.
"The things helping munis the most right now is that there's no issuance," one trader in New York said in an interview.
Some deals originally scheduled for Thursday or Friday have been pushed up to come to market before a forecasted snowstorm hits the northeast on Thursday afternoon, traders said. There were $351.2 million across eight negotiated deals and $156.7 million in 15 competitive deals offered by midday Wednesday, according to Thomson Reuters. There is one deal scheduled for Friday.
"Municipal market activity picked up on Tuesday after a very slow open to the week, but $6.6 billion in MSRB reported volume remains well below last Tuesday's $9.5 billion pace. In part, reduced trading levels reflect an anemic new issue slate," Janney said in a report Wednesday.
Municipal bond yields climbed on the long end of the curve Wednesday, playing catch-up to Treasury losses that occurred Wednesday after testimony by Federal Reserve Chair Janet Yellen.
"The market's a little worse in sympathy with Treasuries but we're seeing way more bids than offers," another New York-based trader said. "We're stuck in a little bit of a trading rut."
Yields on municipal bonds maturing from 2021 to 2027 gained by as much as two basis points, according to Municipal Market Data's AAA scale. Other bonds maturing from 2018-2044 rose as much as one basis point in yield.
Treasuries yields continued climbing, with the 30-year moving five basis points higher to 3.73% and the 10-year jumping six basis points to 2.77%. The two-year yield rose two basis points to 0.36%.
