Munis were mostly steady on Tuesday as U.S. Treasuries cheapened. Equities ended higher.
Muni yields richened by up to two basis points on most scales, although the MMD scale showed them up to two basis points higher in some maturities. UST yields were lower up to the six-month range but rose by up to seven basis points in the rest of the curve, with the biggest losses at the long end.
NewSquare Capital's Kim Olsan said munis were probably benefiting from the upcoming July redemptions and light calendar this week, shortened by the holiday. The new-issue calendar will take a bit to pick back up, Olsan said, so dealers are likely trying to fill up their inventory to meet redemption-driven demand.
Olsan also noted some high-profile deals, led by a general obligation deal out of Georgia, impacted the market.
"It's not surprising to see some of those names moving the curve a bit," Olsan said.
