NEW YORK – The California municipal market was mostly flat Wednesday amid light to moderate secondary trading activity.
The Municipal Market Data triple-A 10-year scale was flat Wednesday ay 2.96%, the 20-year remained unchanged at 4.26%, and the scale for 30-year bonds held at 4.70%.
Wednesday’s triple-A muni scale in 10 years was at 85.5% of comparable Treasuries and 30-year munis were at 103.3% according to MMD. Meanwhile, 30-year tax-exempt triple-A general obligation bonds were at 108.5% of the comparable London Interbank Offered Rate.
In the daily MMD commentary, Randy Smolik wrote “munis have been mostly focused on the very light issuance over the past several weeks.”
“But, lower yield trading ranges in Treasuries have also kept muni participants fearless in pushing the belly of the serial range to new yield lows daily,” he wrote. “Now, Treasuries are showing indecisiveness over inflation pressures coming down the pike. The turmoil in the Middle East will not go away overnight but inflation concerns may persevere, especially in light of the beige book report.”
The recovery continued through early February, as “modest to moderate” expansion was seen in all twelve Federal Reserve Districts, according to the Beige Book report released Wednesday.
The Treasury market was weaker Wednesday. The benchmark 10-year note was quoted recently at 3.48% after opening at 3.38%. The 30-year bond was quoted recently at 4.57% after opening at 4.48%. Meanwhile, the two-year note was quoted recently at 0.70% after opening at 0.64%.
The economic calendar was light Wednesday.
Activity in the California new-issue market was light Wednesday.
Previous Session's Activity
The most actively traded security in the state yesterday insured Sacramento Municipal Utility District 5s of 2028, which traded 46 times at a high of par and a low of 98.119.
