Facing a choppy municipal-bond market, the developer of three office towers at the World Trade Center decided Thursday to pull back on a scheduled $1.3 billion bond sale.

Larry Silverstein will wait "until the bond market stabilizes" to sell the tax-exempt Liberty Bonds to finance the first of his buildings, a 1.8 million square foot tower already under construction on the southeast corner of the site, according to a statement released by his company, Silverstein Properties. People familiar with the matter said Mr. Silverstein will take a "day-to-day" approach.

The typically calm muni-market has been in turmoil in recent weeks ...