NEW YORK – The California municipal market was flat to slightly firmer Wednesday, amid light to moderate secondary trading activity.
“We’re a bit better,” a trader in San Francisco said. “Probably a basis point or two on the whole.”
The Treasury market showed some losses Wednesday. The benchmark 10-year note was quoted recently at 2.96% after opening at 2.90%. The 30-year bond was quoted recently at 4.09% after opening at 4.05%. The two-year note was quoted recently at 0.57% after opening at 0.53%.
The Municipal Market Data triple-A scale yielded 2.57% in 10 years and 3.64% in 20 years Wednesday, following levels of 2.57% and 3.65% Tuesday. The scale yielded 3.96% in 30 years Wednesday, compared to 3.96% Tuesday.
Wednesday’s triple-A muni scale in 10 years was at 87.1% of comparable Treasuries and 30-year munis were at 97.3%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 105.3% of the comparable London Interbank Offered Rate.
Elsewhere in the California new-issue market Wednesday, The credit is rated Aa3 by Moody’s, AA-minus by Standard & Poor’s, and AA by Fitch.
Morgan Stanley priced $175 million of second series revenue bonds for the San Francisco Airport Commission in two series.
Bonds form the $92.5 million Series A mature in 2029, yielding 4.90% priced at par. The bonds are callable at par in 2019.
Bonds from the $82.5 million Series B mature in 2029, yielding 4.90% priced at par. The bonds are callable at par in 2019.
The credit is rated A1 by Moody’s, A by Standard & Poor’s, and A-plus by Fitch.
In economic data released Wednesday, the Institute for Supply Management's non-manufacturing business activity composite index was 54.3 in July, up from 53.8 in June, on a seasonally adjusted basis.
Economists polled by Thomson Reuters had expected a 53.0 level.
Previous Session's Activity
The most actively traded security in the state yesterday was insured Elk Grove Finance Authority 5s of 2025, which traded 82 times at a high of 95.905 and a low of 93.691.
