The municipal market was largely unchanged Friday, in light secondary market trading activity.“It’s fairly quiet,” a trader in New York said. “I’m not seeing a ton of trading going on, and I think people are mostly just winding down for the week. I’m not really feeling a pull in either direction, I’d say we’re just pretty flat.”
“We’re kind of mixed again, actually,” a trader in Los Angeles said. “It’s up in some spots, down in others, but we’re talking like a basis point in either direction, and we’re still mostly flat throughout the curve. There’s not a whole lot trading. It’s pretty quiet.”
The Treasury market showed losses Friday. The yield on the benchmark 10-year note, which opened at 3.65%, was quoted near the end of the session at 3.67%. The yield on the two-year note was quoted near the end of the session at 1.02% after opening at 1.01%. The yield on the 30-year bond, which opened at 4.56%, was quoted near the end of the session at 4.58%.
Trades reported by the Municipal Securities Rulemaking Board Friday showed little movement. Bonds from an interdealer trade of Massachusetts Health and Educational Facilities Authority 5.75s of 2036 yielded 5.90%, up one basis point from where they traded Thursday.
Bonds from an interdealer trade of California 4.5s of 2036 yielded 5.85%, one basis point lower than where they were sold Thursday.
A dealer sold to a customer Port of Seattle 5.25s of 2028 at 4.72%, one basis point lower than where they traded Thursday. A dealer sold to a customer South Jersey Transportation Authority 5.5s of 2033 at 5.46%, even with where they were sold Thursday.
Bonds from an interdealer trade of insured Los Angeles Department of Water and Power 5s of 2039 yielded 5.30%, one basis point higher than where they traded Thursday.
Bonds from an interdealer trade of Sacramento County 6s of 2041 yielded 6.28%, even with where they were sold Thursday.
Bonds from an interdealer trade of Colorado Springs, Colo., 5.75s of 2024 yielded 5.95%, even with where they traded Thursday.
A dealer sold to a customer Empire State Development Corp. 5.25s of 2023 at 4.63%, even with where they were sold Thursday.
As of Thursday’s close, the triple-A muni scale in 10 years was at 84.2% of comparable Treasuries, according to Municipal Market Data. Additionally, 30-year munis were 104.3% of comparable Treasuries. Also, as of Thursday’s close, 30-year tax-exempt triple-A general obligation bonds were at 111.0% of the comparable London Interbank Offered Rate.
In economic data released Friday, the University of Michigan’s final July consumer sentiment index reading was 66.0, compared to the preliminary 64.6 reading. Economists polled by Thomson Reuters had predicted a 65.0 reading for the index.
Activity in the new-issue market was light Friday.
