The municipal bond market was quiet on Tuesday on the last full trading day of 2014. The market has an early close on Wednesday and a full close on Thursday.
Muni bond prices were stronger in thin trade, according to traders.
The Week Ahead
No bond or note deals are scheduled for sale until next week.
Secondary Market
High-grade municipal bond prices were higher again on Tuesday. The yield on the benchmark 10-year general obligation dropped as much as two basis points from 2.08% on Monday, while the yield on 30-year GOs declined from one to three basis points from 2.93%, according to a preliminary read of MMD's triple-A scale.
Treasury prices moved higher, with the two-year note yield falling to 0.68% on Tuesday from 0.71% on Monday. The 10-year yield decreased to 2.18% from 2.22% while the 30-year dropped to 2.75% from 2.78% on Monday.
On Monday, the 10-year muni to Treasury ratio was at 93.4% versus 93.3% on Friday, while the 30-year muni to Treasury ratio was at 104.9% compared to 105.0% on Friday.
MSRB Reports Previous Session's Activity
The Municipal Securities Rulemaking Board reported 23,570 trades on Monday on volume of $3.272 billion.
Most active on Monday, based on the number of trades, was the New Jersey Transportation Trust Fund Authority transportation program bonds, Series AA 4 1/4s of 2044, which traded 131 times with an average price of 99.961 and an average yield of 4.224%.
