The municipal bond market began slipping into holiday mode early as the primary market wound down on Thursday ahead of the three-day Labor Day weekend.
There were no major bond deals of note scheduled on the primary market calendar for Thursday or Friday.
Secondary Market
Treasury prices were higher on Thursday, with the yield on the two-year Treasury note dropping to 0.69% from 0.71% on Wednesday, while the 10-year yield fell to 2.16% from 2.19% and the 30-year yield decreased to 2.93% from 2.96%.
The yield on the 10-year benchmark muni general obligation on Wednesday closed steady from 2.19% on Tuesday, while the yield on the 30-year GO was unchanged from 3.12%, according to the final read of Municipal Market Data's triple-A scale.
The 10-year muni to Treasury ratio was calculated on Wednesday at 100.0% versus 101.0% on Tuesday, while the 30-year muni to Treasury ratio stood at 105.4% compared to 106.5%, according to MMD.
Tax-Exempt Money Market Funds See Outflows
Tax-exempt money market funds experienced outflows of $810.7 million, bringing total net assets to $246.69 billion in the period ended Aug. 31, according to The Money Fund Report, a service of iMoneyNet.com. This followed an inflow of $350.7 million to $247.49 billion in the previous week.
The average, seven-day simple yield for the 382 weekly reporting tax-exempt funds remained at 0.01% for the 122nd straight week.
The total net assets of the 965 weekly reporting taxable money funds fell $28.53 billion to $2.440 trillion in the period ended Sept. 1, after experiencing an inflow of $20.47 billion to $2.468 trillion in the prior week.
The average, seven-day simple yield for the taxable money funds remained at 0.02% for the 33rd week in a row.
Overall, the combined total net assets of the 1,348 weekly reporting money funds decreased $29.34 billion to $2.687 trillion in the period ended Sept. 1, which followed an inflow of $20.82 billion to $2.716 trillion the week before.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 41,585 trades on Wednesday on volume of $7.753 billion.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar fell $1.16 billion to $6.37 billion on Thursday. The total is comprised of $2.17 billion competitive sales and $4.20 billion of negotiated deals.
