It's going to be a slow week in the municipal market with a thin new issue calendar and light trading as market participants look to get their hands on paper before the end of the summer season.
"There's not a lot going on in new issue land," a New York trader said. "You could almost hear a pin drop in here; it's the end of August and we have a skeleton staff. This is the last hurrah for summer. Hopefully things pick up after Labor Day, but it's going to be a quiet week."
Investors said the two largest deals scheduled to price on Tuesday in the primary market are "two good candidates for high quality paper with a lack in yield."
Wake County, N.C., is expected to auction $345.2 million of general obligation public improvement bonds on Tuesday, the largest deal of the week.
"It's a high quality issue," a second New York trader said. "Depending on investors' appetite and funds, the deal should do well. People may want a portion of their portfolio to have high quality paper. But there won't be much yield."
The bonds mature from 2016 to 2034. The deal is rated triple-A by Moody's Investors Service, Standard & Poor's and Fitch Ratings.
In the negotiated market, Siebert Brandford will bring $158.3 million of District of Columbia income tax secured revenue refunding bonds.
"The income tax D.C. deal is very high quality," the second New York trader said. "I haven't seen the scales yet, but from a yield perspective it's not going to be exciting.
The bonds mature from 2014 to 2025. The deal is rated Aa1 by Moody's and AA-plus by Fitch.
Maria Bonello is a reporter for The Bond Buyer