Municipal bond sellers emerged Tuesday morning amid a softer market and a flurry of primary deals expected to price later in the day.

"It's a little busier," a New York trader said. "There are lots of sellers and a lot of stuff out for the bid." But with June reinvestment money about to hit the market and little supply, traders didn't expect the sell-off to last long.

Bank of America Merrill Lynch is expected to hold a second retail order period on $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. Institutional pricing is expected Wednesday.

In the first retail order period, 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.

Goldman, Sachs & Co. is expected to price for retail $452 million of Los Angeles Department of Water and Power System revenue bonds, rated Aa3 by Moody's and AA-minus by Standard & Poor's and Fitch. Institutional pricing is expected Wednesday.

Raymond James is expected to price for institutions $117.8 million of Dormitory Authority of the State of New York school districts revenue bond financing programs, following a retail pricing Monday.

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.

In the competitive market, triple-A rated Prince George's County, Md., is expected to auction $216.7 million of GOs.

Yields on the Municipal Market Data scale were as much as three basis points weaker Monday. The 10-year yield increased one basis point to 1.83% and the 30-year yield jumped three basis points to 3.00%. The two-year held steady at 0.28% for the eighth session.

The Municipal Market Advisors 5% scale showed yields rising as much as two basis points. The 10-year and 30-year yields increased one basis point each to 1.89% and 3.11%. The two-year yield held steady at 0.33% for a seventh consecutive session.

Treasuries were weaker Tuesday for a second session this week. The benchmark 10-year yield increased two basis points to 1.99% and the 30-year yield rose one basis point to 3.19%. The two-year was steady at 0.25%.

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