NEW YORK – The California municipal market was mostly flat Thursday amid light to moderate secondary trading activity.
“It’s pretty much unchanged,” a trader in Los Angeles said. “There was some decent trading activity, but overall, just an unchanged day.”
The Municipal Market Data triple-A scale yielded 2.32% in 10 years Thursday, up one basis point from Wednesday’s 2.31%, while the 20-year scale climbed one basis point to 3.32% from Wednesday’s 3.31%. The scale for 30-year debt yielded 3.73%, matching Wednesday.
Thursday’s triple-A muni scale in 10 years was at 93.2% of comparable Treasuries and 30-year munis were at 95.6%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 105.7% of the comparable London Interbank Offered Rate.
The Treasury market showed losses Thursday. The benchmark 10-year note was quoted recently at 2.51% after opening at 2.43%.
The 30-year bond was quoted recently at 3.91% after opening at 3.82%. The two-year note was quoted recently at 0.39% after opening at 0.36%.
The Treasury Department Thursday auctioned $13 billion of 30-year bonds with a 3 7/8% coupon at a 3.852% high yield and a price of 100.40. The bid-to-cover ratio was 2.49. Federal Reserve banks also bought $114.2 million for their own accounts in exchange for maturing securities.
In economic data released Thursday, producer prices rose more than economists expected in September, jumping 0.4% due to higher food prices.
Core prices, excluding food and energy goods, edged up 0.1% for the month. Economists expected increases of 0.2% in producer prices and 0.1% in core prices, according to the median estimate from Thomson Reuters.
Initial jobless claims rose by 13,000 filings to a four-week high of 462,000 the week ending Oct. 9.
Continuing claims fell to 4.399 million, the lowest level in almost two years.
Economists expected 445,000 initial claims and 4.450 million continuing claims, according to the median estimate from Thomson Reuters.
Activity in the California new-issue market was light Thursday.
Previous Session's Activity
The most actively traded security in the state yesterday was taxable California BABs 7.95s of 2036, which traded 200 times at a high of 111.051 and a low of 105.535.
