The municipal market was firmer yesterday, lagging a Treasury rally, as the Los Angeles Department of Water and Power priced $616 million of taxable Build America Bonds.
“The market is pretty strong,” a trader in Chicago said. “We’re not quite keeping pace with Treasuries because of certain political aspects, but I would say the market is strong. We moved a lot of paper today. It is probably up a good three or four basis points, particularly in 10 years and under, and as we get to the heart of the curve, the 10-to-20 space, its up two or three.”