The municipal market was unchanged to slightly weaker yesterday, kicking off what’s expected to be a heavy week of new issuance.
“I think we’re off maybe a couple basis points on the bid side,” a trader in Chicago said. “It’s kind of a new level. It seems people are nibbling at it. There’s been a couple interesting trades, very slight adjustments. I think this week is going to be wait-and-see. I get the sense that we’ve made a correction in the past couple of weeks. It’s going to depend on a fair amount of volume. This week seems a little more weighted in the BABs — last week was more of the regular issue stuff. We’ll have to see how the balances of last week’s deals clean up.”