The municipal market was slightly firmer Friday. Traders said tax-exempt yields were lower by two or three basis points.
"The market's a bit better, more so on the shorter end than the long," a trader in Los Angeles said. "We're probably better two or three basis points on the whole, but it's a bit scattered. Some long bonds are pretty flat actually."
Trades reported by the Municipal Securities Rulemaking Board Friday showed gains. A dealer sold to a customer Virginia 4.5s of 2025 at 5.02%, one basis point lower than where they were sold Thursday. A dealer sold to a customer Florida Housing Finance Corp. 5.15s of 2037 at 7.13%, two basis points lower than where they traded Thursday. Bonds from an interdealer trade of California 5.25s of 2038 yielded 5.85%, down three basis points from where they traded Thursday. A dealer sold to a customer insured New Jersey Transportation Trust Fund Authority 5s of 2020 at 5.10%, one basis point lower than where they were sold Thursday.
The Treasury market, however, was mixed Friday. The yield on the benchmark 10-year Treasury note, which opened at 3.98%, finished at 3.96%. The yield on the two-year note was quoted near the end of the session at 1.56%,after opening at the same level. And the yield on the 30-year bond, which opened at 4.33%, was quoted near the end of the session at 4.37%.
In economic data released Friday, personal income rose 0.2% in September after a revised 0.4% rise the previous month. Economists polled by Thomson Reuters had predicted a 0.1% gain.
Personal consumption dipped 0.3% in September after no change in August. Economists polled by Thomson Reuters had predicted a 0.3% decline.
The core personal consumption expenditures deflator climbed 0.2% in September, after a 0.2% rise the previous month. Economists polled by Thomson had predicted a 0.1% uptick.
The Chicago Purchasing Managers' Business Barometer plunged to 37.8 in October from 56.7 in September, its lowest level since May 2001. Economists polled by Thomson Reuters predicted a 48.0 reading for the indicator.
The University of Michigan's final October consumer sentiment index reading was 57.6, compared to the preliminary October reading of 57.5, the final September 70.3 reading , the preliminary September 73.1 reading, and the final August 63.0 reading, according to market sources.
Economists polled by Thomson had predicted a 57.5 reading for the index.
Activity in the new-issue market was light Friday.
