Bond yields at a glance | ||||
MBIS benchmark (~AA) | MBIS AAA | MMD AAA | U.S. Treasuries | |
10 year | 2.595 | 2.476 | 2.35 | 2.74 |
30 year | 3.033 | 2.927 | 2.91 | 2.96 |
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MBIS indices are updated hourly on the Bond Buyer Data Workstation. | ||||
The municipal bond market is focusing its attention on Thursday on rising bond yields a day after the Federal Reserve signaled it could raise interest rates at its next meeting in March.
Since the beginning of the year, 10-year muni yields have risen by 32 basis points while yields on top-rated 10-year munis have risen by 37 basis points.
Secondary market
The Federal Open Market Committee left interest rates unchanged at the conclusion of its two-day monetary policy meeting. It was Janet Yellen’s last FOMC meeting and set the stage for a rate hike in March under her successor Jerome Powell.
The MBIS municipal non-callable 5% GO benchmark scale was weaker in early trading while the MBIS AAA scale was stronger.
The 10-year MBIS muni benchmark yield rose to 2.595% on Thursday from the final read of 2.590% on Wednesday, according to
Turning to top-quality bonds, the 10-year MBIS muni AAA yield decreased to 2.476% on Thursday from the final read of 2.504% on Wednesday, according to
The MBIS benchmark index is updated hourly on the
And top-rated munis finished mixed on Wednesday, according to Municipal Market Data. The yield on the 10-year benchmark muni general obligation rose one basis point to 2.35% from 2.34% on Tuesday, while the 30-year GO yield was unchanged at 2.91%, according to the final read of MMD’s triple-A scale.
On Jan. 2, the 10-year muni yield stood at 1.98% while the 30-year muni yield was put at 2.55%.
U.S. Treasuries were weaker in early activity. The 10-year Treasury yield rose to 2.74% from 2.73% while the yield on the 30-year Treasury increased to 2.96% from 2.95%.
On Wednesday, the 10-year muni-to-Treasury ratio was calculated at 86.5% compared with 84.1% on Tuesday, while the 30-year muni-to-Treasury ratio stood at 96.6% versus 99.0%, according to MMD.
MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 47,799 trades on Wednesday on volume of $13.37 billion.
California, New York and Texas were the three states with the most trades on Tuesday, with the Golden State taking 14.196% of the market, the Empire State taking 10.178% and the Lone Star State taking 9.945%.
Bond Buyer 30-day visible supply at $5.10B
The Bond Buyer's 30-day visible supply calendar increased $35.2 million to $5.10 billion on Thursday. The total is comprised of $1.56 billion of competitive sales and $3.54 billion of negotiated deals.
Tax-exempt money market funds saw outflows
Tax-exempt money market funds experienced outflows of $285.1 million, bringing total net assets to $137.52 billion in the week ended Jan. 29, according to The Money Fund Report, a service of iMoneyNet.com.
This followed an inflow of $1.68 billion on to $137.80 billion in the previous week.
The average, seven-day simple yield for the 197 weekly reporting tax-exempt funds fell to 0.69% from 0.75% the previous week.
The total net assets of the 828 weekly reporting taxable money funds decreased $25.32 billion to $2.638 trillion in the week ended Jan. 30, after an inflow of $24.17 billion to $2.663 trillion the week before.
The average, seven-day simple yield for the taxable money funds increased to 0.97% from 0.64% from the prior week.
Overall, the combined total net assets of the 955 weekly reporting money funds decreased $25.61 billion to $2.775 trillion in the week ended Jan. 30, after inflows of $25.85 billion to $2.801 trillion in the prior week.
Data appearing in this article from Municipal Bond Information Services, including the MBIS municipal bond index, is available on The Bond Buyer Data Workstation.
