Municipal bond and Treasury yields fell Friday morning after the employment report showed job growth improvements with slowed wages and no change in the unemployment rate.
Muni yields advanced Friday morning, with bonds maturing from 2017 to 2022 slipping as much as three basis points and bonds maturing beyond 2023 falling as much as two basis points. Yields on short-terms were steady, according to the Municipal Markets Data triple-A scale.
Treasuries strengthened Friday morning, with the 10-year benchmark and the two-year notes dropping three basis points each to 2.76% and 0.43%, respectively. The 30-year yields slid one basis point to 3.61%.
The total potential new issue volume scheduled for next week is about $5.4 billion, up from this week's $3.2 billion issuance, according to Ipreo and The Bond Buyer.
Not only will next week's calendar continue the light issuance trend seen in all of 2014, but it is once again heavy with education deals. Issuance will be led by $650 million of New York City Teach for America bonds that are rated Aa1 by Moody's Investors Services and AAA by both Standard and Poor's and Fitch Ratings.
The University of Connecticut will sell $220 million of bonds, which received an Aa3 rating from Moody's, an AA rating from S&P and an AA-minus from Fitch.
Goldman, Sachs & Co. received the formal award on $411.2 million of University of California taxable revenue bonds.
The bonds are priced at par to yield from 0.15% in 2015 to 3.738% in 2025. All of the bonds are callable at par in 2024, except those maturing in 2025. There is a term bond in 2044.
The bonds were priced with a spread to Treasuries ranging from 18 in 2016 to 115 in 2044. There is also a Treasury make whole call.
