The municipal market was quiet and unchanged Friday, as participants stayed on the sidelines following a deluge of new-issue supply last week.
"I think everyone's just ready for the weekend, honestly," a trader in New York said. "We really got bombarded with supply this week, and I think everyone just needed to catch their breath a bit. And to an extent, that's what people have been doing the last two days, but I think that's definitely carrying through to today as well. There's not a lot trading, and people are content to just sit on the sidelines and wait for next week."
Trades reported by the Municipal Securities Rulemaking Board Friday showed little movement. A dealer sold to a customer Massachusetts 5s of 2027 at 4.64%, even with where they traded Thursday. A dealer sold to a customer insured New Jersey Economic Development Authority 5.5s of 2031 at 5.80%, even with where they were sold Thursday. Bonds from an interdealer trade of insured Long Island Power Authority 5s of 2034 yielded 5.57%, even with where they traded Thursday. Bonds from an interdealer trade of California 5.125s of 2025 at 5.56%, even with where they were sold Thursday.
"You could practically hear a pin drop out on the Street today," a trader in Los Angeles said. "A lot of folks were just catching their breath from the week, digesting all that supply, and holding on to what they've got for the day. Just a quiet, unchanged Friday."
The Treasury market was somewhat mixed Friday. The yield on the benchmark 10-year Treasury note, which opened at 2.74%, was quoted near the end of the session at 2.76%. The yield on the two-year note was quoted near the end of the session at 0.92%, after opening at 0.90%. And the yield on the 30-year bond, which opened at 3.66%, was quoted near the end of the session at 3.61%.
As of Thursday's close, the triple-A scale in 10 years was at 118.2% of comparable Treasuries, according to Municipal Market Data. Additionally, 30-year munis were 132.9% of comparable Treasuries. Also, as of the close Thursday, 30-year tax-exempt triple-A rated general obligation bonds were at 145.6% of the comparable London Interbank Offered Rate.
In economic data released Friday, personal income dropped 0.2% in February, after a revised 0.2% gain the previous month. Economists polled by Thomson Reuters had predicted a 0.1% decline.
Personal consumption climbed 0.2% in February, after a revised 1.0% uptick the previous month. Economists polled by Thomson had predicted a 0.2% rise.
The core personal consumption expenditures deflator rose 0.2% in February, after a 0.1% gain the previous month. Economists polled by Thomson had predicted a 0.1% increase.
Also, the University of Michigan's final March consumer sentiment index reading was 57.3, compared to the preliminary March 56.6. Economists polled by Thomson had predicted a 56.3 reading for the index.
Activity in the new-issue market was light Friday.
