NEW YORK – The California municipal market was weaker this afternoon by two or three basis points, picking up where it left off yesterday.
“We’re a bit weaker again,” a trader in San Francisco said. “We’re probably down a good three basis points, maybe a little more, maybe a little less, in spots. It’s just been a pretty rough week out in muniland. We’ve definitely seen weakness set back into the market in a big way this week.”
The Treasury market showed losses today. The yield on the benchmark 10-year Treasury note, which opened at 3.25%, was quoted recently at 3.38%. The yield on the two-year note was quoted recently at 0.97%, after opening at 0.88%. And the yield on the 30-year bond, which opened at 4.09%, was quoted recently at 4.22%.
As of yesterday’s close, the triple-A muni scale in 10 years was at 87.1% of comparable Treasuries, according to Municipal Market Data. Additionally, 30-year munis were 99.0% of comparable Treasuries. Also, as of the close yesterday, 30-year tax-exempt AAA-rated general obligation bonds were at 99.2% of the comparable London Interbank Offered Rate.
Trades reported by the Municipal Securities Rulemaking Boar today showed losses. A dealer sold to a customer Metropolitan Water District of Southern California 5s of 2039 at 4.21%, up one basis point from where they traded yesterday. Bonds from an interdealer trade of Los Angeles Unified School District Build America Bonds 5.75s of 2034 yielded 5.93%, three basis points higher than where they were sold yesterday. A dealer sold to a customer Lower Paxton, Penn., BABs 6.345s of 2039 at 6.07%, up three basis points from where they traded yesterday. A dealer sold to a customer University of Arkansas 4s of 2029 at 4.09%, four basis points from where they were sold yesterday.
The economic calendar was light today.
Activity in the California new-issue market was light today.
Previous Session's Activity
The Municipal Securities Rulemaking Board reported most active yesterday was California 3.75s of 2013, which traded 722 times at a high of par and a low of 99.648.
