Friday's market will be dominated by the impact of the morning's release of the jobs report, traders anticipated.
"Supply is still too tight for GDP alone to truly impact anything," said a New York based trader. "Supply and demand is the most important factor keeping the market in right now."
The jobs report will be the final piece of the puzzle this week for clues whether the economy is indeed strengthening.
However, in true municipal fashion, the reaction in the municipal market will likely lag the news and follow the Treasury reaction.
"Munis are lemmings, they follow, not lead," said the New York trader.
While economic data may have been heavy this week, the issuance calendar was light and Friday will be no exception. Just two deals are slated to price in the negotiated market and none are expected in the competitive.
Raymond James will price $36.5 million of school building bonds for Falls City ISD, Texas, on Friday. The deal is rated A-plus by Moody's Investor Services. McKinney, Texas, will also tap the market for $29.555 million taxable general obligation refunding bonds led by BOSC. This deal is rated Aa1 by Moody's and triple-A by Standard & Poor's, according to information provided by TM3
