Top quality municipal bonds were weaker at mid-session, traders said, who were keeping a wary eye on the direction of muni yields, which have risen by as much as 60 basis points since Election Day and by 113 basis points since all-time lows hit last July.
Secondary Market
The yield on the 10-year benchmark muni general obligation rose one to three basis points from 2.30% on Monday, while the yield on the 30-year increased by as much as two basis points from 3.06%, according to a read of Municipal Market Data's triple-A scale.
Since election week, benchmark muni yields have gained as much as 60 basis points. On Monday, Nov. 7, the 10-year muni yield stood at 1.70% while the 30-year yield was at 2.53%.
Both the 10-year and 30-year muni yields fell to all-time lows this year, with the 10-year hitting 1.29% and the 30-year falling to 1.93% both on July 6. Since then, the 10-year has risen 101 basis points and the 30-year has gained 113 basis points.
U.S. Treasuries were narrowly mixed on Tuesday. The yield on the two-year rose to 1.09% from 1.08% on Monday, the 10-year Treasury dropped to 2.31% from 2.34%, while the yield on the 30-year Treasury bond decreased to 3.00% from 3.01%.
On Monday, the 10-year muni to Treasury ratio was calculated at 98.6% compared to 96.9% on Friday, while the 30-year muni to Treasury ratio stood at 101.8% versus 100.5%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 45,449 trades on Monday on volume of $10.73 billion.
Primary Market
This week's $1.04 billion holiday calendar is composed of $897 million of negotiated bond deals and $145 million of competitive bond sales.
JPMorgan Securities priced the State of New York Mortgage Agency's $83.05 million of homeowner mortgage revenue alternative minimum tax and non-AMT bonds on Tuesday.
The $64.03 million of Series 200 non-AMT bonds were priced at par to yield 3.90% in 2036 and as 3 1/2s to yield 2.35% as a PAC bond in in 2045.
The $19.02 million of Series 201 AMT bonds were priced at par to yield from 1.10% in 2017 to 3.40% in 2027 and 3.85% in 2031.
The SONYMA deal is rated Aa1 by Moody's Investors Service.
There are no competitive deals larger than $100 million on this week's calendar.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $1.82 billion to $9.88 billion on Tuesday. The total is comprised of $3.52 billion of competitive sales and $6.36 billion of negotiated deals.
