NEW YORK – Supply outweighed demand in the municipal market as yields rose for a third consecutive trading session on an influx of new deals.

“Munis are weaker because of supply,” a New York trader said.

Muni were weaker Wednesday morning, according to the Municipal Market Data scale. Yields inside five years were steady while yields outside six years jumped as much as three basis points.

On Tuesday, the 10-year yield jumped two basis points to 1.78%, to 11 basis points above its record low of 1.67% set Jan 18. The 30-year yield spiked four basis points to 3.09%, closing five basis points off the record low of 3.04% set Friday. The two-year yield was steady at 0.32% for the third consecutive trading session.

Treasuries were also weaker for the third session. The benchmark 10-year yield and the 30-year yield each jumped five basis points to 1.62% and 2.68%. The two-year yield rose one basis point to 0.26%.

In the negotiated market, Goldman, Sachs & Co. is expected to price for institutions $800 million of New York City Transitional Finance Authority future tax-secured and tax-exempt subordinate bonds in two series, following a two-day retail order period. The bonds are rated Aa1 by Moody’s Investors Service and AAA by Standard & Poor’s and Fitch Ratings.

On the second day of retail, yields ranged from 0.55% with 2%, 4%, and 5% coupons in a split 2015 maturity to 3.37% with a 4% coupon in 2039. Credits maturing in 2014 were offered via sealed bid. Bonds maturing in 2024, 2025, 2029 and 2030, and between 2034 and 2038 were not offered for retail. The bonds are callable at par in 2022 except for credits maturing between 2026 and 2028 which are callable at par in 2018.

Yields were increased up to six basis points on the long end from the first day of retail pricing Monday.

Ramirez & Co. is expected to price for retail $415.6 million of Massachusetts Bay Transportation Authority assessment bonds, rated Aa1 by Moody’s and AAA by Standard & Poor’s.

In the competitive market, Seattle, Wash., is expected to auction $226.3 million of revenue bonds, rated Aa1 by Moody’s and AA-plus by Standard & Poor’s.

New York City Transitional Finance Authority is expected to sell $200 million of revenue bonds in two pricings – each $100 million – rated Aa1 by Moody’s and AAA by Standard & Poor’s.

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