NEW YORK – The California municipal market was flat to slightly firmer Tuesday amid light to moderate secondary trading activity and as 20-year tax-exempt yields dipped to an all-time low.
“We’re probably better a basis point or two on the long end,” a trader in Los Angeles said. “I’m not sure we’re any different on the short end.”
The Municipal Market Data triple-A scale yielded 2.32% in 10 years Tuesday, matching Monday, while the 20-year scale dipped one basis point to a new record low of 3.27%.. The scale for 30 year debt yielded 3.68%, down two basis points from Monday’s 3.70%.
The previous 20-year low of 3.28%, which was originally set Aug. 31, was matched Thursday, Friday, and Monday, before being broken Tuesday. Yields on the 10-year and 30-year triple-A scale bottomed out at 2.17% and 3.67%, respectively, on Aug. 25.
Tuesday’s triple-A muni scale in 10 years was at 94.3% of comparable Treasuries and 30-year munis were at 100.8%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 113.2% of the comparable London Interbank Offered Rate.
The Treasury market mostly showed gains Tuesday. The benchmark 10-year note was quoted recently at 2.47% after opening at 2.53%.
The 30-year bond was quoted recently at 3.66% after opening at 3.72%. The two-year note was quoted recently at 0.44% after opening at 0.43%.
In economic data released Tuesday, the Conference Board’s consumer confidence index slipped to 48.5 in September from a downwardly revised 53.2 last month.
The August index was originally reported as 53.5.
Economists polled by Thomson Reuters predicted the index would be 52.5.
Activity in the California new-issue market was light Tuesday.
Previous Session's Activity
The most actively traded security in the state yesterday was taxable San Diego County BABs 6.628s of 2040, which traded 108 times at a high of 102.500 and a low of 100.125.
