The municipal market opened the week with an eye toward the coming primary market calendar.
The week has started off with little activity; few bid-wanteds have crossed traders' screens. Most are gearing up for the week's more sizable issues, a trader in New York said.
"There's not a lot happening yet," she said. "The focus is going to be on some of the larger deals this week-the $1.5 Catholic Health taxable, some of the larger competitive. There's not a big calendar today. And it's still very quiet following the weekend."
The primary market expects a total of $7.64 billion in supply this week. That compares with a revised $7.44 billion last week.
The number approximates the amount the market has been seeing lately. Industry watchers expect the amount to be absorbed easily.
A $1.5 billion taxable deal for the Catholic Health Initiative, in Colorado, should pace all deals on the calendar. Just under $900 million of Honolulu city and county general obligation bonds in seven series should also pepper the docket. A deal for $550 million in California GO refunding bonds is expected to lead all competitive issues.
Municipal yields outperformed those of Treasuries last week across the curve. Over the week, Treasury yields rose three, 11, and 11 basis points in the two-, 10-, and 30-year sections of the curve.
By comparison, muni yields rose just five and two basis points in the 10- and 30-year sections of the curve - the two-year remained flat for the week. Muni ratios to Treasuries for the 10-year and 30-year fell to below 100%, subsequently.
The 30-year yield held steady at 2.86%. The two-year remained at 0.30% for the 18th consecutive trading session.
Treasuries yields have started the week higher, continuing the upward course they assumed for most of last week. The benchmark 10-year yield has risen three basis points to 1.80%.
The 30-year yield has climbed two basis points to 2.96%. The two-year yield has ticked up one basis point to 0.31%.