The tax-exempt market was more active than expected for the typically quiet week before the Labor Day holiday.
Municipal bond traders said trades were getting done in the secondary market - although it wasn't necessarily enough to push the market higher or lower.
"It's kind of sideways," a New York trader said. "But there are buyers out there with some inquiries."
In the primary market Wednesday, Wells Fargo Securities priced $77.7 million of Florida Municipal Power Agency Stanton II project revenue bonds, rated A1 by Moody's Investors Service and A-plus by Fitch Ratings.
Yields ranged from 0.43% with a 2% coupon in 2013 to 3.12% with a 3% coupon in 2027. The bonds are callable at par in 2022.
Bank of America Merrill Lynch sold $59.1 million of Florida Municipal Power Agency St. Lucie project revenue bonds, rated A2 by Moody's and A by Fitch. The bonds are priced to yield 2.99% with a 5% coupon in 2026 and are callable at par in 2022.
On the competitive calendar, the South Carolina Association of Government Organizations auctioned $105.4 million short-term taxable and tax-exempts in two series, as well as a series of long-term bonds. The credit is rated Aa1 by Moody's.
B of A Merrill won the bid for the first series of $4.8 million of taxable certificates of participation, at a yield of 0.30% with a 0.375% coupon in 2013.
B of A Merrill also won the bid for the second series of $88.5 million of tax-exempt certificates of participation, at a yield of 0.10% with a 1.75% coupon in 2013.
Pricing information on the third series of $12.06 million of tax-exempt debt was not immediately available.
On Tuesday, the 10-year Municipal Market Data yield fell one basis point to 1.75%. The 30-year finished steady at 2.90% while the two-year closed at 0.29% for the 24th consecutive session.
Treasuries continued to weaken as Wednesday trading progressed. The benchmark 10-year yield and the 30-year yield jumped three basis points each to 1.67% and 2.78%, respectively. The two-year was steady at 0.28%.