NEW YORK – The California new-issue market was slightly weaker Tuesday amid light to moderate secondary trading activity.
“The story was the primary market today, just like it’s going to be all week,” a trader in Los Angeles said. “We’re probably two, maybe three basis points weaker, with all eyes focused on the new issues. There wasn’t a whole lot of action in the secondary, and I anticipate that will continue to be the case as the week progresses.”
The Municipal Market Data triple-A scale yielded 2.49% in 10 years Tuesday, up one basis point from Monday’s 2.48%, while the 20-year scale edged up two basis point to 3.36%, up from Monday’s 3.34%. The scale for 30-year debt yielded 3.74%, one basis point higher than Monday’s 3.73%.
Tuesday’s triple-A muni scale in 10 years was at 100.8% of comparable Treasuries and 30-year munis were at 100.3%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 110.7% of the comparable London Interbank Offered Rate.
The Treasury market was weaker Tuesday. The benchmark 10-year note was quoted recently at 2.49% after opening at 2.47%.
The 30-year bond was quoted recently at 3.75% after opening at 3.70%. The two-year note was quoted recently at 0.42% after opening at 0.41%.
In economic data released Tuesday, the Institute for Supply Management’s non-manufacturing business activity composite index climbed to a seasonally adjusted 53.2 in September from 51.5 in August, the group said Tuesday.
Economists expected a 51.5 level. Readings below 50 signal economic contraction. Levels above 50 signal growth.
Activity in the California new-issue market was light Tuesday.
Previous Session's Activity
The most actively traded security in the state yesterday was Mount Diablo Unified School District 0s of 2022, which traded 33 times at a high of 58.665 and a low of 57.040.
