Bond markets little changed

Munis were steady to slightly firmer in spots Monday, as U.S. Treasuries were little changed throughout most of the curve following hostilities in the Strait of Hormuz. Equities ended higher.

Muni yields fell by up to two basis points. UST yields were changed up to a basis point two years and out.

The U.S. and Iran have both reportedly agreed to stop attacks after escalating tensions in the Strait of Hormuz, said Tim Iltz, fixed-income credit and market analyst at HJ Sims. But attacks have taken a toll on oil prices, according to Iltz.

"Although there is an agreement in place, shipowners remain wary of crossing the strait. As a result, oil prices are up again [Monday] morning," Iltz wrote.

While the muni market sees a lighter new-issue calendar due to the holiday week, "accounts are likely to be attentive with over $100 billion in combined July and August redemptions," he said.

New-issue market
In the primary market Monday, Raymond James priced for Main Street Energy (A3///) $580.21 million of energy project revenue refunding bonds, Series 2026C, with 5s of 9/2036 at 4.38%, callable 6/2036.

J.P. Morgan Securities priced for the Rhode Island Commerce Corp. (/AA-//) $158.045 million of grant anticipation refunding bonds, with 5s of 6/2027 at 2.53% and 5s of 2031 at 2.88%, noncall.