The municipal bond market was deathly quiet on Friday after the Christmas holiday. Minimal activity is expected.
Prices of high-quality municipal bonds were unchanged, according to Municipal Market Data.
The Week Ahead
No bond or note deals, negotiated or competitive, are scheduled for sale until after the start of the New Year.
Secondary Market
High-grade municipal bond prices were steady on Friday. The yield on the benchmark 10-year general obligation scale was flat from 2.10% on Wednesday, while the yield on 30-year GOs was unchanged from 2.95% on Wednesday, according to a preliminary read of Municipal Market Data's triple-A scale.
Treasury prices were higher, with the two-year note yield declining to 0.73% on Friday from 0.74% on Wednesday. The 10-year yield decreased to 2.25% from 2.27% while the 30-year dropped to 2.81% from 2.85% on Wednesday.
MSRB Reports Previous Session's Activity
The Municipal Securities Rulemaking Board reported 11,031 trades on Wednesday on volume of $2.510 billion.
Most active on Wednesday, based on the number of trades, were the Bolingbrook, Ill., refunding bonds of 12/29/14 Series A 4s of 2038, which traded 84 times with an average price of 100.3 and an average yield of 3.953%. Second most active were the New Jersey Transportation Trust Fund Authority transportation program bonds, Series AA 4 1/4s of 2044, which traded 44 times with an average price of 99.604 and an average yield of 4.265%.
Muni Bond Indexes Mostly Unchanged
The weekly average yield to maturity of the Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, gained three basis points in the week ended Dec. 24, rising to 4.31% from the 4.28% the previous week.
The Bond Buyer's 20-Bond GO Index of 20-year general obligation yields went unchanged from the previous week at 3.65%. The last time the index was lower was on May 16, 2013, when it stood at 3.61%.
The 11-Bond GO Index of higher-grade 20-year GO yields was also unchanged from the previous week at 3.50%. It is at its lowest level in over a year, when it stood at 3.46% on May 23, 2013.
The Bond Buyer's Revenue Bond Index stayed put from the previous week at 4.43%. The last time it was at this number was Sept. 6, 2012.
The Yield on the U.S. Treasury's 10-year note increased six basis points to 2.27% from 2.21% the previous week. The yield on the Treasury's 30-year bond rose one basis point to 2.83% from 2.82% the previous week.
Aaron Weitzman contributed to this report.
