Municipals were stronger as bond market participants were winding up their activity ahead of the early close. Financial markets will be closed on Wednesday in observance of Independence Day and SIFMA has recommended a 2 p.m., ET, close on Tuesday.
Municipal bonds were stronger on Tuesday, according to a read of the MBIS benchmark scale. Benchmark muni yields fell as much as one basis point in the one- to 30-year maturities.
High-grade munis were also stronger, with yields calculated on MBIS’ AAA scale falling throughout the curve by as much as one basis point.
Municipals were unchanged on Municipal Market Data’s AAA benchmark scale, which showed both the 10-year muni general obligation yield and the 30-year muni maturity remaining steady.
Treasury bonds were little changed as stocks traded mixed.
On Monday, the 10-year muni-to-Treasury ratio was calculated at 85.9% while the 30-year muni-to-Treasury ratio stood at 98.4%, according to MMD. The muni-to-Treasury ratio compares the yield of tax-exempt municipal bonds with the yield of taxable U.S. Treasury with comparable maturities. If the muni/Treasury ratio is above 100%, munis are yielding more than Treasury; if it is below 100%, munis are yielding less.
Previous session's activity
The Municipal Securities Rulemaking Board reported 38,142 trades on Monday on volume of $10.55 billion.
California, New York and Texas were the states with the most trades, with the Golden State taking 15.035% of the market, the Empire State taking 12.467% and the Lone Star State taking 10.18%.
Ipreo estimates weekly bond volume at $73.8 million, down from a revised total of $4.69 billion last week, according to updated data from Thomson Reuters. The calendar contains no negotiated deals, just competitive sales.
Bond Buyer 30-day visible supply at $4.27B
The Bond Buyer's 30-day visible supply calendar increased $1.14 billion to $4.27 billion on Tuesday. The total is comprised of $1.87 billion of competitive sales and $2.39 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.