NEW YORK – The streak is over.
After nine straight sessions, 10-year municipals did not set a new record low Monday, instead remaining flat amid fairly light secondary trading to open the week.
“There was still a definite firmer tone, but like Friday, the secondary was quiet,” a trader in Los Angeles said. “There wasn’t a whole lot trading, but business that needed to get done got done. Overall though, it was pretty quiet and pretty flat.”
The Municipal Market Data triple-A scale yielded 2.29% in 10 years and 3.39% in 20 years Monday, matching record-low levels of 2.29% and 3.39% Thursday. The scale yielded 3.75% in 30 years Friday, matching an all-time low of 3.75% Thursday.
Monday’s unchanged levels break streaks of nine straight historical low for 10-year munis, and two second consecutive all-time lows for 20- and 30-year tax-exempts.
Monday’s triple-A muni scale in 10 years was at 88.4% of comparable Treasuries and 30-year munis were at 102.7%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 114.0% of the comparable London Interbank Offered Rate.
The Treasury market was mostly flat Monday. The benchmark 10-year note was quoted recently at 2.60% after opening at 2.61%. The 30-year bond was quoted recently at 3.66% after also opening at 3.66%. The two-year note was quoted recently at 0.49% after also opening at 0.49%.
In the California new-issue market this week, a $533 million revenue sale from the Southern California Public Power Authority also will be priced by JPMorgan on Wednesday following a retail order period Tuesday. The bonds are being issued on behalf of the Windy Point/Windy Flats power project.
They mature from 2011 to 2030 and have AA-minus ratings from Standard & Poor's and Fitch.
The economic calendar was light Monday.
Previous Session's Activity
The most actively traded security in the state yesterday was California 4.5s of 2030, which traded 59 times at a high of 98.919 and a low of 92.125.
