NEW YORK – The California municipal market was slightly firmer Friday amid fairly light secondary trading activity.
“We’re better a few basis points,” a trader in Los Angeles said. “The activity was somewhat light, and we were fairly flat in the morning, but by the end of the day, we picked up a good two, three, maybe even four basis points throughout the curve.”
The Municipal Market Data triple-A 10-year scale fell four basis points Friday to 3.34%, the 20-year dropped four basis points to 4.57%, and the scale for 30-year bonds declined four basis point to 4.90%.
Friday’s triple-A muni scale in 10 years was at 91.5% of comparable Treasuries and 30-year munis were at 104.0% according to MMD. Meanwhile, 30-year tax-exempt triple-A general obligation bonds were at 109.5% of the comparable London Interbank Offered Rate.
Treasuries mostly showed gains Friday. The benchmark 10-year note was quoted recently at 3.65% after opening at 3.69%. The 30-year bond was quoted recently at 4.71% after opening at 4.75%. The two-year note was quoted recently at 0.85% after opening at 0.83%.
In economic data released Friday, the University of Michigan's preliminary February consumer sentiment index reading was 75.1, compared to the final January 74.2 reading. Economists polled by Thomson Reuters had predicted a 75.0 reading for the index.
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.
