NEW YORK – The California municipal market was mostly flat Monday amid fairly light secondary trading activity.
“There wasn’t a whole lot to speak about today, but there’s a pretty decent calendar out there this week nationally,” a trader in Los Angeles said. “There should be a bit of a focus on the primary this week. As far as today goes, I don’t really see how you call it anything but flat. We’ve had a fair amount of volatility over the last few weeks, but today we’re just unchanged.”
The Municipal Market Data triple-A scale yielded 2.32% in 10 years Monday, while the 20-year scale held at its record low of 3.28%, both matching Friday’s levels. The scale for 30 year debt yielded 3.70%, also matching Friday.
The 20-year low of 3.28%, which was matched Thursday, Friday, and Monday, was originally set Aug. 31. Yields on the 10-year and 30-year triple-A scale bottomed out at 2.17% and 3.67%, respectively, on Aug. 25.
Monday’s triple-A muni scale in 10 years was at 92.1% of comparable Treasuries and 30-year munis were at 100.0%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 111.1% of the comparable London Interbank Offered Rate.
The Treasury market showed gains Monday. The benchmark 10-year note was quoted recently at 2.52% after opening at 2.61%.
The 30-year bond was quoted recently at 3.70% after opening at 3.80%. The two-year note was quoted recently at 0.43% after opening at 0.44%.
The economic calendar was light Monday.
Activity in the California new-issue market was light Monday.
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 57 times at a high of 102.500 and a low of 100.100.
