The tax-exempt market held steady Thursday afternoon even with a firmer Treasury market. Market participants looked to finalize trades ahead of what is expected to be a quiet Friday before the Labor Day weekend.
"It's actually been busy today," a New York trader said. "I'm thinking people are trying to get some month-end stuff done since I don't think anyone will be around tomorrow."
This trader said yields were mostly unchanged.
JPMorgan priced and repriced for institutions $656.2 million of New York City Housing Development Corp. capital fund grant program revenue bonds, rated AA-minus by Standard & Poor's.
Yields on the first series of $186 million ranged from 0.25% with a 2% coupon in 2014 to 4.15% with a 4% and 5% coupon in a split 2025 maturity. The bonds are callable at par in 2023. In repricing, yields were lowered as much as seven basis points on bond maturing in eight years. Yields had already been lowered three basis points and one basis point in preliminary pricing on bonds maturing in 2016 and 2021, respectively.
Yields on the second series of $470.2 million ranged from 0.25% with a 2% coupon in 2014 to 5.04% with a 5% coupon in 2033. The bonds are callable at par in 2023. In repricing, yields were lowered between four and seven basis points on bonds maturing between 2016 and 2020.
In the competitive market, triple-A rated Austin, Texas, auctioned $189.9 million in three pricings.
Citi won the bid for $113.3 million of public improvement bonds. Yields ranged from 0.19% with a 2% coupon in 2014 to 4.49% with a 5% coupon in 2033. The bonds are callable at par in 2023. Bonds with 5% coupons yielded eight to 30 basis points above Wednesday's Municipal Market Data scale.
Frost Bank won the bid for $51.2 million of public property finance contractual obligations. Yields ranged from 0.23% with a 0.5% coupon and 0.30% with a 1% coupon in a split 2014 maturity to 1.55% and 1.68% with 3% coupons in a split 2018 maturity.
Robert W. Baird & Co. won the bid for $25.3 million of certificates of obligation. Yields ranged from 0.77% with a 4% coupon in 2016 to 4.67% with a 4.5% coupon in 2038. The bonds are callable at par in 2023.
Wednesday, yields on the triple-A Municipal Market Data scale ended as much as two basis points weaker. The 10-year yield rose one basis point to 2.94% and the 30-year yield climbed two basis points to 4.45%. The two-year finished flat at 0.43% for the 31st straight session.
Yields on the Municipal Market Advisors scale ended as much as two basis points higher. The 30-year yield rose one basis point to 4.54%. The 10-year was flat at 3.08% and the two-year closed unchanged at 0.55% for the 10th session.
Treasuries turned positive Thursday afternoon as yields fell. The benchmark 10-year and 30-year yields slid three basis points each to 2.76% and 3.72%, respectively. The two-year was steady at 0.40%.
