Traders in the municipal bond market were more concerned about March Madness than trading tax-exempts as activity was quiet.
“We’re backing out of the market,” a trader located in the Southwest region said. “We’re not bidding much because we’re trying to cut down on inventory. But it’s been pretty quiet ever since the tournament started.”
On Thursday, municipal bond market scales ended weaker for a second session.
Yields on the Municipal Market Data triple-A GO scale ended steady. The 10-year yield and 30-year yield were flat at 1.95% and 3.10%, respectively. The two-year finished flat at 0.31% for the 23rd consecutive session.
Yields on the Municipal Market Advisors 5% coupon triple-A benchmark scale also ended as much as one basis point higher. The 10-year yield was steady at 2.01% for the second session while the 30-year yield rose one basis point to 3.20%. The two-year held at 0.33% for the 18th session.
Treasuries were flat Friday morning. The benchmark 10-year yield and 30-year yield were steady at 1.93% and 3.15%, respectively. The two-year was flat at 0.26%.
In the primary market next week, $2.97 billion of bonds should be priced, down from this week’s revised $7.16 billion. On the negotiated calendar, $2.51 billion should be issued, down from this week’s revised $5.44 billion. On the competitive side, $457 million should be auctioned, down from this week’s revised $1.72 billion.