Municipal bonds turned mixed on Thursday on a cold and snowy day in the Northeast as stocks surged to new highs.

Secondary market
The MBIS municipal non-callable 5% GO benchmark scale was stronger in late trading.

The 10-year muni benchmark yield dropped to 2.254% on Thursday from the final read of 2.263% on Wednesday, according to Municipal Bond Information Services. The MBIS 30-year benchmark muni yield decreased to 2.732% from 2.735%.

The MBIS benchmark index is updated hourly on the Bond Buyer Data Workstation.

Top-rated municipal bonds finished weaker on Thursday. The yield on the 10-year benchmark muni general obligation rose one basis point to 1.99% from 1.98% on Wednesday, while the 30-year GO yield gained two basis points to 2.56% from 2.55% according to the final read of MMD’s triple-A scale.

U.S. Treasuries were mixed in late trade. The yield on the two-year Treasury gained to 1.96% on Thursday from 1.94% on Wednesday, the 10-year Treasury yield was flat from 2.45% and the yield on the 30-year Treasury decreased to 2.78% from 2.79%.

The Dow Jones Industrial average passed the 25,000 mark on Thursday to trade up 0.64% in late activity. The S&P 500 Index gained 0.46% while the Nasdaq Index increased 0.25%.

The Dow moved up as better-than-expected data on manufacturing and private payrolls made analysts believe that a pick-up in economic growth combined with new tax breaks will push up corporate earnings.

On Thursday, the 10-year muni-to-Treasury ratio was calculated at 81.3% compared with 81.0% on Wednesday, while the 30-year muni-to-Treasury ratio stood at 92.0% versus 91.2%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 46,720 trades on Wednesday on volume of $16.25 billion.

Tax-exempt money market funds saw inflows
Tax-exempt money market funds experienced inflows of $130.8 million, bringing total net assets to $131.06 billion in the week ended Jan. 1, according to The Money Fund Report, a service of iMoneyNet.com.

This followed an outflow of $261 million to $130.93 billion in the previous week.

The average, seven-day simple yield for the 199 weekly reporting tax-exempt funds passed the 1.0% mark, finishing the week at 1.03%, up from 0.79% the previous week.

The total net assets of the 826 weekly reporting taxable money funds increased $4.66 billion to $2.675 trillion in the week ended Jan. 3, after an inflow of $11.07 billion to $2.670 trillion the week before.

The average, seven-day simple yield for the taxable money funds rose to 0.92% from 0.89% from the prior week.

Overall, the combined total net assets of the 1,025 weekly reporting money funds increased $4.79 billion to $2.806 trillion in the week ended Jan. 3, after inflows of $10.81 billion to $2.801 trillion in the prior week.

Primary market
RBC Capital Markets is set to price the New Jersey Economic Development Authority’s $381.195 million of state lease revenue bonds for state government buildings on Friday.

The deal is rated Baa1 by Moody’s Investors Service, BBB-plus by S&P Global Ratings and A-minus by Fitch Ratings and Kroll Bond Rating Agency.

Bond Buyer 30-day visible supply at $5.19B
The Bond Buyer's 30-day visible supply calendar increased $855.6 million to $5.19 billion on Thursday. The total is comprised of $2.40 billion of competitive sales and $2.79 billion of negotiated deals.

Data appearing in this article from Municipal Bond Information Services, including the MBIS municipal bond index, is available on The Bond Buyer Data Workstation. Click here for a brief tour of the Workstation, or contact Vanessa Kim at 212-803-8474 for more information.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.
Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.