NEW YORK – The California municipal market was flat to slightly firmer Thursday amid light to moderate secondary trading activity.
“There’s a slightly firmer tone, but the activity is somewhat light,” a trader in Los Angeles said. “We’re maybe a basis point better in spots, but you could call it flat really and not be wrong.”
The Municipal Market Data triple-A 10-year scale climbed fell basis point Thursday to 3.38%, the 20-year dropped one basis point to 4.61%, and the scale for 30-year bonds declined one basis point to 4.94%.
Thursday’s triple-A muni scale in 10 years was at 91.4% of comparable Treasuries and 30-year munis were at 103.8% according to MMD. Meanwhile, 30-year tax-exempt triple-A general obligation bonds were at 109.1% of the comparable London Interbank Offered Rate.
Treasuries showed losses Thursday. The benchmark 10-year note was quoted recently at 3.71% after opening at 3.65%. The 30-year bond was quoted recently at 4.78% after opening at 4.71%. The two-year note was quoted recently at 0.85% after opening at 0.80%.
In economic data released Thursday, initial jobless claims dropped 36,000 to 383,000 for the week ending Feb. 5, the lowest level since July 2008.
Continuing claims fell by 47,000 to 3.888 million for the week ending Jan. 29.
January snow storms closed many state unemployment offices across the country. The closures caused initial claims filings to spike once the offices reopened. Those fluctuations have now evened out in the initial claims data.
Economists expected 410,000 initial jobless claims and 3.900 million continuing claims, according to the median estimate from Thomson Reuters.
Wholesale inventories increased 1.0% in December. Wholesale sales increased 0.4%. Economists expected inventories would increase 0.7% and sales would gain 1.3%, according to the median estimate from Thomson Reuters.
Activity in the California new-issue market was light Thursday.
Previous Session's Activity
The most actively traded security in the state yesterday was Imperial Beach Redevelopment Agency 5.125s of 2040, which traded 94 times at a high of 78.000 and a low of 74.271.
