With limited volume generated from the primary calendar, the secondary and scales were sluggish on Monday morning in anticipation of the week's new issues.
In the negotiated markets, FirstSouthwest issued a preliminary pricing wire for a $129.54 million unlimited tax school building and refunding bond on behalf of Montgomery County, Texas, according to data provided by Ipreo. Funding the Conroe Independent School District, the serial bonds are initially priced to yield from 0.31% on a 3% coupon in 2016 to 3.05% on a 5% coupon in 2039, according to Ipreo. The school district is rated triple-A by both Moody's Investors Service and Standard & Poor's.
JP Morgan will hold a retail order period for the $644.060 million New Jersey Economic Development Authority deal, slated for institutional pricing on Tuesday. The deal will be a school facilities construction bond and is rated A2 by Moody's, according to TM3.
Secondary trading was light and limited on Monday morning, with only the usually liquid variable rate Lower Neches Valley Authority Development Corporation revenue bonds trading over $10 million in par amount, according to Municipal Securities Rulemaking Board's disclosure website, EMMA.
Scales were unchanged from Friday's close, holding steady across the curve as of midday Monday, according to data provided by TM3.
The Treasury market strengthened on Monday morning, giving traders an indication this week's deals would echo the firmness and price tight. Yields on the two-year note were at 0.55%, a two basis point fall from Friday's close, while yields on the 10-year dropped three basis points to 2.42%. The 30-year dropped one basis point to 3.12%.
