Munis cheapen, USTs end mixed

Muni yields were cut across all maturities on Tuesday, as U.S. Treasuries were mixed and equities ended lower.

The rise in muni yields was "in sympathy with what's happening with the Treasury market," said Cooper Howard, a director of fixed income research and strategy at Charles Schwab (SCHW).

This week's Federal Open Market Committee meeting is unlikely to prompt significant changes in the market, Howard said, because it's widely expected that the Federal Reserve will leave rates the same ? but the Fed holding rates steady also reduces the downside for short-term yields near-term, he added.

"I think what's been notable is that pretty recently, everything's been relatively range-bound," Howard said. "So it doesn't appear that there's anything that's going to ... break it out of that near-term range. I think what would likely be the bigger catalyst is the situation with Iran, how that ultimately develops and translates to the Treasury market, and then ultimately to the muni market."

New-issue market
In the primary market Tuesday, BofA priced for Ohio (Aa1/AA+//) $262.095 million of major new state infrastructure project revenue and refunding bonds, Series 2026-1, with 5s of 12/2026 at 2.53%, 5s of 2031 at 2.74%, 5s of 2036 at 3.17% and 5s of 2037 at 3.24%, callable 12/2034.

Jefferies priced for the Indiana Finance Authority (A1/A+//) $256.075 million of health system revenue bonds, Series 2026A, on behalf of Parkview Health, with 5s of 11/2029 at 2.80%, 5s of 2031 at 3.03%, 5s of 2036 at 3.52%, 5s of 2041 at 3.85%, 5s of 2046 at 4.36%, and 5s of 2049 at 4.62%, callable 5/2036.

In the competitive market, the Kansas Development Authority (Aa2///) sold $414.37 million of revenue bonds, Series 2026A, on behalf of the University of Kansas, to Jefferies, with 5s of 5/2027 at 2.63%, 5s of 2031 at 2.75%, 5s of 2036 at 3.16%, 5s of 2041 at 3.57%, 4.5s of 2046 at 4.52%, and 4.5s of 2051 at 4.671%, callable 5/2034.

Delaware (Aaa/AAA/AAA/) sold $347.66 million of GOs to Morgan Stanley (MS), with 5s of 5/2027 at 2.49%, 5s of 2031 at 2.56%, 5s of 2036 at 2.96%, 5s of 2041 at 3.37% and 4s of 2046 at 4.148%, callable 5/2036.