NEW YORK – The municipal market was largely unchanged today, with a slightly weaker tone.
Traders said tax-exempt yields were flat to higher by one basis point in spots.
“It’s quiet, and there isn’t a ton of movement, but it feels a little bit weaker, mostly on the long end,” a trader in New York said. “There’s a bit more activity in the secondary than there was yesterday, but it’s still somewhat quiet. The new issue calendar is pretty light, and I think it might take until next week to really get everyone back into the market full force. As for today, I’d say maybe a bit weaker in spots, but mostly unchanged.”
“We might be a bit better on the long end, maybe a bit weaker on the short end, but it’s pretty quiet overall,” a trader in Los Angeles said. “Not too much activity, which is to be expected coming back from the holiday, and the calendar is light too, so that won’t help, but activity should pick up quite a bit by next week.”
The Treasury market showed losses today. The yield on the benchmark 10-year Treasury note, which opened at 3.49%, was quoted recently at 3.53%. The yield on the two-year note was quoted recently at 0.95%, after opening at 0.93%. And the yield on the 30-year bond, which opened at 4.31%, was quoted recently at 4.38%.
As of yesterday’s close, the triple-A muni scale in 10 years was at 83.5% of comparable Treasuries, according to Municipal Market Data. Additionally, 30-year munis were 98.1% of comparable Treasuries. Also, as of the close yesterday, 30-year tax-exempt AAA-rated general obligation bonds were at 101.7% of the comparable London Interbank Offered Rate.
In the new-issue market today, Morgan Stanley priced $148.7 million of education facilities refunding revenue bonds for St. Joseph County, Ind. The bonds mature in 2036, yielding 4.33% with a 5% coupon. The bonds, which are callable at par in 2018, are rated triple-A by Moody’s Investors Service.
The economic calendar was light today.
Visible Supply
The Bond Buyer’s 30-day visible supply rose $275.4 million to $8.099 billion. The total is comprised of $1.794 billion of competitive deals and $6.305 billion of negotiated bonds.
Previous Session's Activity
The Municipal Securities Rulemaking Board reported 33,205 trades of 12,290 separate issues for volume of $8.38 billion yesterday. Most active was Waterbury, Conn., 7.09s of 2038, which traded 343 times at a high of 105.375 and a low of 99.120.
