Municipal Bonds Tread Water As New Issues Dominate Session
May 03, 2011
Secondary market prices essentially remained stalled throughout the session as market participants awaited the outcome of a Federal Open Market Committee meeting. The Fed ultimately opted to leave key lending rates unchanged. In the secondary, 5.875% securities of 2022 were 1/8 lower in late trading at 99 7/8-100 1/8, yielding 5.87%. As for the day's new issues, more than $700 million of offerings included a $249.5 million of Austin, Texas, utility system refunding bonds, which sold out at yields from 4.4% in 2015 to 5.8% in 2025, managing underwriter J.P. Morgan Securities said. The bonds are insured by MBIA Insurance Corp. and Financial Security Assurance Inc.
