The municipal market was mostly flat with a slightly firmer tone Thursday amid elevated secondary trading activity. The San Francisco Public Utilities Commission competitively sold $344.2 million of taxable Build America Bonds as the long end of the muni curve stayed above the long Treasury yield.
“The market still is very firm in spite of Treasuries going down,” a trader in Los Angeles said. “I think it has a lot to do with supply and demand. There is really very little supply in the marketplace. All the new issues seem to come to market priced through with the expectations of where its going to be. At higher prices they do tend to get cleaned up.”