The tax-exempt market eyed two large New York deals pricing for retail Monday in the primary, taking the focus away from a softer secondary market.

Bank of America Merrill Lynch priced for retail $944.7 million of New York City general obligation bonds, rated A2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings. A second retail order period is expected Tuesday followed by institutional pricing Wednesday.

Yields on the first series of $266.6 million ranged from 0.39% with 2% and 3% coupons in a split 2015 maturity to 2.28% with 3% and 4% coupons in a split 2023 maturity. Bonds maturing in 2013 and 2014 were offered via sealed bid. Bonds maturing in 2024 and 2025 were not offered for retail. The bonds are callable at par in 2023.

Yields on the second series of $678.1 million ranged from 0.39% with a 5% coupon in 2015 to 3.00% with a 3% coupon in 2027. Bonds maturing in 2014 were offered via sealed bid. Bonds maturing in 2024 and 2025 were not offered for retail. The bonds are callable at par in 2023.

Also in New York, Raymond James priced for retail $117.8 million of Dormitory Authority of the State of New York school districts revenue bond financing programs. Institutional pricing is expected Tuesday.

The first series of $35.4 million is rated A-plus by Standard & Poor's and Fitch. Yields ranged from 0.70% with a 2% coupon in 2015 to 3.29% with a 4% coupon in 2028. Bonds maturing in 2013 were offered via sealed bid. Bonds maturing between 2016 and 2028 were insured by Assured Guaranty Municipal Corp. The bonds are callable at par in 2023.

The second series of $7.6 million is rated AA by Standard & Poor's and A-plus by Fitch. Yields ranged from 0.45% with a 2% coupon in 2014 to 3.81% with a 4% coupon in 2042. The bonds are callable at par in 2023.

The third series of $28.6 million is rated AA-minus by Standard & Poor's and A-plus by Fitch. Yields ranged from 0.60% with a 2% coupon in 2015 to 3.54% with a 3.5% coupon in 2032. Bonds maturing in 2014 were offered via sealed bid. The bonds are callable at par in 2023.

The fourth series of $6.3 million is rated Aa3 by Moody's and A-plus by Fitch. Yields ranged from 0.50% with a 3% coupon in 2014 to 3.86% with a 4% coupon in 2042. The bonds are callable at par in 2023.

The fifth series of $39.9 million is rated A-plus by Standard & Poor's and Fitch. Yields ranged from 0.80% with a 2% coupon in 2015 to 3.39% with a 4% coupon in 2028. Bonds maturing between 2016 and 2028 were insured by AGM. Credits maturing in 2014 were offered via sealed bid. The bonds are callable at par in 2023.

The retail pricings Monday come amid an expected drop in overall issuance this week with $5.11 billion scheduled to be priced, down from last week's revised $5.43 billion. In negotiated issues, $4.14 billion should be priced, down from last week's revised $4.29 billion. On the competitive calendar, $968 million is expected to be auctioned, down from last week's revised $1.14 billion.

The secondary market was otherwise quiet and softer. "It's weaker 10 years and out just following Treasuries," a New York trader said.

Yields on the Municipal Market Data scale were as much as two basis points weaker Friday. The 10-year yield increased one basis point to 1.82% and the 30-year yield jumped two basis points to 2.97%. The two-year held steady at 0.28% for the seventh session.

The Municipal Market Advisors 5% scale showed yields rising as much as three basis points. The 10-year yield increased two basis points to 1.88% and the 30-year yield jumped three basis points to 3.10%. The two-year yield held steady at 0.33% for a sixth consecutive session.

Treasuries were choppy Monday afternoon. The benchmark 10-year yield increased one basis point to 1.96% while the 30-year yield fell one basis point to 3.16%. The two-year was flat at 0.25%.

 

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