Municipals were flat to mixed by midday Friday as traders recovered from the largest calendar week in nearly three months. With another heavy week ahead, investors saved their bullets for the more than $9 billion expected to hit the market.
Bond maturing in 2016 showed weakness, softening up to two basis points during morning trading on Friday, according to the Municipal Market Data's triple-A 5% scale provided by TM3. Bonds maturing in 2015 and 2017 through 2019 held steady as those maturing in 2020 through 2044 tightened up as much as one basis point.
The market's undecided directionality comes largely from the light day in the primary, providing traders no data to indicate market conditions, said a southwest based trader. No deals over $100 million are scheduled to price on Friday, according to data provided by The Bond Buyer and Ipreo.
The primary's inactivity was echoed in the secondary where morning trading was light, said the southwest trader.
Adventist Health System West, a California-based hospital system continued trading through Friday morning. The 4s of 2043 had picked up over $21.4 million of trades as of 12:30 p.m. and saw yields climb two basis points to 4.15% from 4.13% in round lot trading, according to the Municipal Securities Rulemaking Board's disclosure website EMMA.
ExxonMobile project bonds issued by the Lower Neches Valley Authority Industrial Development Corporation were also a heavy trader on Friday morning, with $32 million of its Series 2010 variable rate demand bonds traded as of 12:30 p.m. Friday, according to EMMA.
