Municipal bond prices remain under pressure at midday as U.S. Treasury yields hit three-year highs and the market looks to next week's $7.17 billion slate.
Munis came under pressure as Treasuries weakened on concern over a possible government shutdown and traders looked ahead to a return to normal in deal volume next week.
The Sales Tax Securitization Corp.’s bond deal was delayed until at least next week, Chicago officials said, citing the market's "weak start" to the year.
The municipal bond market on Tuesday priced the first of the week’s big new issues, before buyers turned their focus to the high-rated, but high-yielding sales tax securitization coming from Chicago on Wednesday.
The municipal bond market saw the first of the week’s big new issues price in the primary. Buyers will see about $3.35 billion of new deals hit the screens this week, with most of the volume coming on Wednesday and Thursday.
