Municipals finished little changed in quiet trading Tuesday as the first half of 2020 and the second quarter of the year came to an end.
The secondary was lethargic as investors chased the new deals in an active primary. Tuesday saw billion-plus deals out of Massachusetts and the County of Los Angeles.
At the halfway point of the year, muni volume stands at $198.05 billion in 5,458 issues.
Customers are not tapping into the secondary as much as they have in previous weeks because of the short holiday week and the size of the new-issue calendar, a Florida trader said.
“It’s taking the customers’ attention away from the secondary,” he added. “It’s really quiet in the secondary market — there’s low flows and the bid-wanted lists are extremely light,” repeating a pattern he also saw on Monday.
Aside from pockets of traders and writing a few transactions with customers, the overall flow is “below average,” according to the trader. “The holiday feels like it’s already begun for us if you are a secondary trader.”
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