NEW YORK – The municipal market was slightly firmer Friday amid light to moderate secondary trading activity.
“It’s somewhat quiet, but we’re definitely seeing some gains again,” a trader in Los Angeles said. “I’d say we’re better by about two basis points overall, maybe one or three in spots. But overall, I’d say two basis points more expensive.”
The Municipal Market Data triple-A scale yielded 2.35% in 10 years Thursday, down eight basis points from Wednesday’s 2.43%, while the 20-year scale dropped three points to 3.32% from Wednesday’s 3.35%. The scale for 30-year debt yielded 3.72%, one basis point lower than Wednesday’s 3.73%.
“We’re a bit firmer,” a trader in New York said. “We’re probably up a basis point or two at this point, but there’s not a whole lot trading.”
Friday’s triple-A muni scale in 10 years was at 97.5% of comparable Treasuries and 30-year munis were at 99.2%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 109.8% of the comparable London Interbank Offered Rate.
The Treasury market mostly showed some losses Friday. The benchmark 10-year note was quoted recently at 2.39% after opening at 2.38%.
The 30-year bond was quoted recently at 3.75% after opening at 3.72%. The two-year note was quoted recently at 0.36% after opening at 0.35%.
In economic data released Friday, total nonfarm payrolls fell more than economists expected in September, declining by 95,000 jobs as cash-strapped state and local governments cut headcounts by the most in 28 years.
The unemployment rate remained at 9.6%. Private nonfarm payrolls rose 64,000.
Economists expected total nonfarm payrolls to be flat for the month and for private payrolls to increase by 75,000, according to the median estimate from Thomson Reuters. They saw unemployment rising to 9.7%.
Wholesale inventories rose 0.8% in August and sales grew 0.5%.
Economists expected wholesale inventories to increase 0.5% and sales to expand 0.4%, according to Thomson Reuters.
Activity in the new-issue market was light Friday.
Visible Supply
The Bond Buyer’s 30-day visible supply fell $2.408 billion to $8.612 billion. The total is comprised of $1.697 billion of competitive bonds and $6.915 billion of negotiated bonds.
Previous Session's Activity
The Municipal Securities Rulemaking Board reported 41,997 trades of 15,059 issues for volume of $16.58 billion. Most active was New York 5.817s of 2031 that traded 389 times at a high of 100.100 and a low of 99.400.
