The municipal market was unchanged to slightly weaker Friday.
"There's not a whole lot going on, but the weaker tone that's been hanging around this market all week is still there," a trader in New York said. "We might be off a basis point if anything, but the tone is definitely weaker."
Trades reported by the Municipal Securities Rulemaking Board Friday showed little movement. Bonds from an interdealer trade of insured Chicago O'Hare International Airport 5.25s of 2027 yielded 5.27%, even with where they sold Thursday. A dealer sold to a customer California Department of Water Resources 5s of 2029 at a 4.60% yield, up one basis point from where they sold Thursday. A dealer sold to a customer insured New York Metropolitan Transportation Authority 5s of 2026 at 4.53%, even with where they were Thursday.
"I'm seeing some weakness on the longer end, maybe to the tune of one or two basis points, but that's about it," a trader in Los Angeles said. "Overall, though, we're unchanged. It's a pretty lazy Friday."
The Treasury market showed some losses Friday. The yield on the benchmark 10-year Treasury note, which opened at 3.83%, finished at 3.88%. The yield on the two-year note was quoted near the end of the session at 2.44% after opening at the 2.39%.
In economic data released Friday, the University of Michigan's final April consumer sentiment index reading was 62.6, compared to the preliminary April 63.2 reading. Economists polled by IFR Markets had predicted a 63.2 reading for the index.
A slate of economic data will be released this week, led Friday by the April non-farm payrolls report. Tomorrow the April consumer confidence index will be released. The advance first quarter gross domestic product report and the April Chicago purchasing managers' index will be released on Wednesday, followed Thursday by March personal income and consumption, the March core personal consumption expenditures deflator, initial jobless claims for the week ended April 26, continuing jobless claims for the week ended April 19, the April Institute for Supply Management business activity composite index, and March construction spending. On Friday, in addition to payrolls, March factory orders will be released.
Economists polled by IFR are predicting a loss of 75,000 jobs, 62.0 consumer confidence reading, a 0.3% rise in GDP, a 47.5 level for the Chicago PMI, a 0.3% uptick in personal income, a 0.3% increase in personal consumption, 0.2% growth to the core PCE deflator, 360,000 initial jobless claims, 2.950 million continuing jobless claims, a 48.0 ISM index reading, a 0.9% dip in construction spending, a 0.3% jump in factory orders, and a 2.0% increase in factory orders excluding transportation.
Activity in the new-issue market was light Friday.
