NEW YORK - The California municipal market was weaker by about three basis points Thursday amid moderate secondary trading activity.
"We gave up another couple basis points today," a trader in Los Angeles said. "I think we were just playing catch-up a little bit after the Treasury sell-off yesterday. There was a bit of a slowdown in the secondary, though still a decent amount of activity out there."
The Municipal Market Data triple-A scale yielded 2.83% in 10 years Thursday, three basis points higher than Wednesday's 2.80%, while the 20-year scale yielded 4.00%, also up three basis points. The scale for 30-year debt rose three basis points as well, to 4.34% from 4.31%.
Thursday's triple-A muni scale in 10 years was at 94.6% of comparable Treasuries and 30-year munis were at 101.9%, according to MMD. Meanwhile, 30-year tax-exempt triple-A general obligation bonds were at 108.5% of the comparable London Interbank Offered Rate.
The Treasury market was weaker Thursday. The benchmark 10-year note was quoted recently at 3.01% after opening at 2.96%. The 30-year bond was quoted recently at 4.27%, after opening at 4.24%. The two-year note was quoted recently at 0.55% after opening at 0.53%.
In economic data released Thursday, initial jobless claims increased more than economists estimated the week ending Nov. 27 as they jumped by 26,000 new filings to 436,000.
Continuing claims increased by 53,000 to 4.270 million for the week ending Nov. 20 to post their first gain in six weeks.
Economists expected 428,000 claims and 4.230 million continuing claims.
Pending home sales surged 10.4% to a level of 89.3 in October from 80.9 in September, according to an index released Thursday by the National Association of Realtors.
Economists predicted an 80.1 reading for the gauge of contract signings to purchase new homes.
Activity in the California new-issue market was light Thursday.
Previous Session's Activity
The most actively traded security in the state yesterday was taxable California BABs 7.7s of 2030, which traded 337 times at a high of 104.003 and a low of 99.951.
