Secondary bond market

Diverse issuers from NYC to Texas to Chicago to Michigan to PA Turnpikes priced billions into the primary while the secondary again took a back seat.

Rates remain stagnant even as UST rallied Monday. Large deals from NYC and Texas issuers are on deck for Tuesday.

On Friday, municipals finished little changed, with yields remaining steady along most of the AAA GO scales.

The new-issue market saw deals from Houston, the Illinois Finance Authority and the City and County of San Francisco, Calif., hit the screens.

Duane McAllister and Lyle Fitterer of Baird talk with Chip Barnett about low rates and credit quality. They discuss the best scenarios for investors and issuers in these challenging times. (20 minutes)

Secondary trading picked up somewhat while the new-issue market saw a large amount of taxables in the negotiated space while Pennsylvania competitively sold $470 million of general obligation bonds.

This deal is designed to expand MarketAxess’ existing municipal bond trading solution for global institutional investor and dealer clients, the firm said.

The Puerto Rico Housing Finance Authority may issue $250 million of tax-exempt capital fund modernization program refunding bonds the week of Sept. 28.

"Yields are just still so remarkably low," a New York City trader said.

Municipals held firm ahead of a strong supply stream of bonds in a calendar heavy with taxable and green bond deals.