NEW YORK – Retail is jumping into the tax-exempt market Wednesday morning as yields are mostly flat across the curve.
“Retail is buying, but some dealers are looking to lighten up,” said a trader in New York.
In Wednesday morning trading, munis were mostly steady, according to the Municipal Market Data scale. Yields inside the five-year and outside the 18-year were flat. Yields on the six- to seven-year maturities rose one basis point.
On Tuesday, the two-year finished at 0.42%. The 10-year closed at 1.88% and the 30-year finished at 3.57%.
Treasuries were mostly flat to slightly weaker on the long end. The two-year was steady at 0.27% and the benchmark 10-year yield was flat at 1.96%. The 30-year yield increased one basis point in Wednesday morning trading to 3.00%.
In the primary market Wednesday, one of only four negotiated deals on the calendar is expected to come to market. RBC Capital Markets is expected to price $8.8 million of Pennsylvania’s Green Township Municipal Authority bank qualified bonds, rated Aa3 by Moody’s Investors Service.
On the competitive calendar Wednesday, the Little Rock, Ark., School District will issue $44 million of bonds.
