The municipal market was mixed and largely flat Friday amid fairly light secondary-trading activity.
“It’s a bit of a mixed bag,” a trader in New York said. “There isn’t a whole lot of activity, and there isn’t a ton of movement either, but the tone is firmer, for the most part, except for the long end. We’re even a little weaker out there. So overall, I’d say we’re mostly flat, but you could say we’re a little bit weaker out long and a little bit better inside of about 20 years.”
“The long end of the curve is feeling a bit weaker, but I’m not seeing a whole lot else going on,” a trader in Los Angeles. “I’d call it pretty flat overall, maybe even some gains on the shorter end.”
The Treasury market was somewhat mixed Friday. The yield on the benchmark 10-year note opened at 3.59% and was quoted near the end of the session at 3.58%. The yield on the two-year note opened at 0.83% and was quoted near the end of the session at 0.78%. The yield on the 30-year bond was quoted near the end of the session at 4.51% after opening at 4.48%.
Friday’s Municipal Market Data triple-A scale yielded 3.00% in 10 years and 3.74% in 20 years, compared to levels of 3.02% and 3.74%, respectively, Thursday. The scale yielded 4.07% in 30 years Friday, following Thursday’s level of 4.05%.
As of Thursday’s close, the triple-A muni scale in 10 years was at 83.7% of comparable Treasuries and 30-year munis were 90.0% of comparable Treasuries, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 92.5% of the comparable London Interbank Offered Rate.
Trades reported by the Municipal Securities Rulemaking Board Friday showed little movement.
Bonds from an interdealer trade of Virginia Public School Authority 4s of 2024 yielded 3.71%, even with where they traded Thursday. A dealer sold to a customer Florida 5s of 2028 at 4.07%, one basis point lower than where they were sold Thursday.
A dealer bought from a customer taxable California Build America Bonds 7.55s of 2039 at 7.62%, two basis points higher than whether they traded Thursday. Bonds from an interdealer trade of taxable Chicago 6.21s of 2032 yielded 6.02%, one basis point higher than where they were sold Thursday.
A dealer sold to a customer taxable Seattle BABs 5.52 of 2028 at 5.32%, even with where they traded Thursday. Bonds from an interdealer trade of Wisconsin 4.4s of 2024 at 3.96%, even with where they were sold Thursday.
A dealer sold to a customer Illinois Educational Facilities Authority 5s of 2038 at 4.25%, even with where they were sold Thursday. A dealer sold to a customer Puerto Rico Sales Tax Financing Corp. 6.05s of 2029 at 5.72%, one basis point lower than where they were sold Thursday.
A dealer sold to a customer insured Detroit City School District 6s of 2029 at 5.14%, even with where they were sold Thursday. Bonds from an interdealer trade of insured Vista, Calif., 5s of 2037 yielded 5.51%, even with where they were sold Thursday.
Both the new-issue market and the economic calendar were light Friday.
