NEW YORK – The California municipal market was mostly flat amid light to moderate secondary trading activity Wednesday.
“It’s pretty quiet on the Street,” a trader in Los Angeles said. “Most of the attention has been fixated on the primary.”
The Treasury market was mixed Wednesday. The benchmark 10-year note was quoted recently at 3.01% after opening at 3.05%. The 30-year bond was quoted recently at 4.08% after opening at 4.08%. The two-year note was quoted recently at 0.62% after opening at 0.65%.
The Municipal Market Data triple-A scale yielded 2.57% in 10 years and 3.67% in 20 years Wednesday, matching levels of 2.57% and 3.67% Tuesday. The scale yielded 3.97% in 30 years Wednesday, matching 3.97% Tuesday.
Wednesday’s triple-A muni scale in 10 years was at 86.0% of comparable Treasuries and 30-year munis were at 97.5%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 105.3% of the comparable London Interbank Offered Rate.
In economic data released Wednesday, new orders of durable goods unexpectedly declined 1.0% in June, the second consecutive monthly drop and the largest decline in 10 months.
Excluding transportation, orders fell 0.6%, the second decline in three months.
Economists predicted durable goods orders would increase 1.0% for the month and orders excluding transportation would increase 0.4%, according to the median estimate from Thomson Reuters.
Activity in the California new-issue market was light Wednesday, though was active elsewhere in the country.
Previous Session's Activity
The most actively traded security in the state yesterday was Walnut Energy Control Authority 6.23s of 2029, which traded 154 times at a high of par and a low of 98.125.
