After a stronger session Thursday, munis gave up gains and then some on Friday as munis followed Treasuries lower. Yields on fixed-income assets spiked as better-than-expected July jobs numbers buoyed risky assets.
Munis were much weaker Friday afternoon, according to the Municipal Market Data scale. Yields inside four years were steady while yields on the five- and six-year rose as much as three basis points. Outside seven years, yields spiked between two and five basis points.
On Thursday, the 10-year tax-exempt yield held steady at 1.66% for the fourth consecutive session, closing above its record low of 1.60% set July 26. The two-year was steady at 0.29% for the sixth consecutive session. The 30-year muni yield fell one basis point to 2.84%, finishing five basis points above its record low of 2.79% set July 25.
Treasuries were much weaker as better-than-expected July jobs numbers pushed traders into risky assets. The benchmark 10-year yield spiked up nine basis points to 1.57% while the 30-year yield jumped 10 basis points to 2.65%. The two-year yield increased one basis point to 0.25%.
In the primary market next week, the market can expect $6.35 billion, up from this week's revised $5.93 billion. On the negotiated calendar, $4.07 billion is expected to be priced, down slightly from this week's revised $4.16 billion. In the competitive market, $2.28 billion is expected to be auctioned, up from this week's revised $1.77 billion.