NEW YORK – The California municipal market was unchanged to slightly firmer Friday amid light to moderate secondary trading activity.
The Municipal Market Data triple-A 10-year scale fell two basis points Friday to 3.16%, the 20-year remained at 4.42%, and the scale for 30-year bonds declined two basis points to 4.76%.
In the daily MMD commentary, Randy Smolik wrote”after three straight days of aggressively reaching for paper, it was tough for the muni rally to simply stall.”
“High-grade customer bid-wanteds in the 2017 to 2021 range showed buyers were still willing to step bids and many of the blocks were eventually sold to customers,” Smolik wrote. “Selectively, one could still see some reaching on longer serial bonds. Although trading seemed to be running in place in the 20- to 25-year range, maximum yielding prime quality bonds still saw aggressive purchases around the 30-year range.”
Friday’s triple-A muni scale in 10 years was at 88.0% of comparable Treasuries and 30-year munis were at 101.3% according to MMD. Meanwhile, 30-year tax-exempt triple-A general obligation bonds were at 107.0% of the comparable London Interbank Offered Rate.
Treasuries showed losses Friday. The benchmark 10-year note was quoted recently at 3.60% after opening at 3.57%. The 30-year bond was quoted recently at 4.70% after opening at 4.66%. The two-year note was quoted recently at 0.78% after opening at 0.77%.
The economic calendar was light Friday.
Activity in the California new-issue market was light Friday.
Previous Session's Activity
The most actively traded security in the state yesterday was San Diego County Water Authority 5s of 2032, which traded 75 times at a high of 98.705 and a low of 95.283.
