NEW YORK – The California municipal market was mostly unchanged Monday amid light to moderate secondary trading activity.
“It’s just flat,” a trader in San Francisco said. “The day was pretty much a non-event.”
The Municipal Market Data triple-A 10-year scale was flat Monday at 3.31%, the 20-year scale remained unchanged at 4.56%, and the scale for 30-year bonds held at 4.78%.
Monday’s triple-A muni scale in 10 years was at 97.9% of comparable Treasuries and 30-year munis were at 104.4 according to MMD. Meanwhile, 30-year tax-exempt triple-A general obligation bonds were at 112.5% of the comparable London Interbank Offered Rate.
Treasuries showed some losses Monday. The benchmark 10-year note was quoted recently at 3.39% after opening at 3.32%. The 30-year bond was quoted recently at 4.58% after opening at 4.53%. The two-year note was quoted recently at 0.57% after opening at 0.54%.
“No one’s really talking about it,” a trader in Los Angeles said. “But it’s definitely something we’ve been seeing out here for quite some time, and it seems like it’s picking up some steam elsewhere in the country.”
In economic data released Monday, personal income gained 0.4% and consumption increased 0.7% in December as energy costs increased, but core consumption increased annually by the smallest amount on record.
Core PCE, which excludes food and energy costs and is the Federal Reserve’s preferred measure of inflation, increased 0.7% from December 2009, a record low increase dating back to 1959. The figure edged down from the previous record low increase of 0.8% set in November. On a monthly basis, core PCE was flat in December.
Energy goods and service prices jumped 4.7% for the month in December.
November’s personal income figure was revised higher to a 0.4% increase from the 0.3% gain reported last month.
Economists expected personal consumption would increase 0.5% and income would increase 0.4%, according to the median estimate from Thomson Reuters
The Chicago Purchasing Managers’ Business Barometer rose to 68.8 in January from 66.8 in December. The data is compiled on a seasonally adjusted basis. An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
Economists polled by Thomson Reuters predicted a 65.0 reading for the indicator.
Previous Session's Activity
The most actively traded security in the state yesterday was San Marcos Redevelopment Agency 8.5s of 2030, which traded 43 times at a high of 101.420 and a low of 98.500.
