NEW YORK – The California municipal market was unchanged with a firmer tone Monday amid fairly light secondary trading activity.
“It is kind of flat, typical Monday,” a trader in San Francisco added. “There’s not a lot of bid wanteds, not a lot of data coming this week. We are watching the stock market.”
The Treasury market showed some losses Monday. The benchmark 10-year note was quoted recently at 2.97%, after opening at 2.92%. The 30-year bond was recently quoted at 3.99% after opening at 3.93%. The two-year note was recently quoted at 0.60% after opening at 0.58%.
The Municipal Market Data triple-A scale yielded 2.61% in 10 years and 3.68% in 20 years Monday, compared to levels of 2.60% and 3.68% Friday. The scale yielded 3.97% in 30 years Monday, matching 3.97% Friday.
Monday’s triple-A muni scale in 10 years was at 88.8% of comparable Treasuries and 30-year munis were at 100.5%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 106.7% of the comparable London Interbank Offered Rate.
In the California new-issue market this week, a $455.8 million water revenue deal from the San Francisco Public Utility Commission is slated for pricing in the competitive market Thursday. The deal includes $409.6 million of water revenue bonds, which will be sold as taxable BABs, as well as another $46.2 million that consists of tax-exempt water revenue and refunding bonds.
Rated Aa2 by Moody's and AA-minus by Standard & Poor's, the deal will finance capital improvement projects.
The economic calendar was light today.
Previous Session's Activity
The most actively traded security in the state yesterday was taxable Monrovia, Calif., 6.625s of 2020, which traded 137 times at a high of 100.954 and a low of 98.704.
