The municipal market was slightly weaker Friday, following Treasuries, with the economic and new-issue calendars largely inactive.
"There isn't a whole lot going on, pretty much a quiet Friday, but there is a little weakness," a trader in New York said. "I'd say we're down a basis point or two."
Trades reported by the Municipal Securities Rulemaking Board Friday showed losses. Bonds from an interdealer trade of insured New York State Dormitory Authority 5s of 2028 yielded 4.93%, up two basis points from where they traded Thursday. A dealer sold to a customer insured Tulsa, Okla., 4.25s of 2027 at 4.25%, one basis point higher than where they were sold Thursday. A dealer sold to a customer Virginia Housing Development Authority 4.9s of 2033 at 5.17%, one basis point higher than where they traded Thursday.
Bonds from an interdealer trade of Arizona's Salt River Project Agricultural Improvement and Power District 5s of 2033 yielded 4.67%, up two basis points from where they were sold Thursday. Bonds from an interdealer trade of Georgia 3s of 2026 yielded 4.68%, one basis point higher than where they traded Thursday. Bonds from an interdealer trade of insured North Texas Tollway Authority 5.125s of 2038 yielded 4.62%, up two basis points from where they were sold Thursday.
"It's very quiet, but we're off a solid two basis points. Generally not too much is happening," a trader in Los Angeles said. "Obviously arbs are better sellers. The bid side drifted [Friday] morning with Treasuries, and even though Treasuries mostly came back down, we're still a little weaker."
The Treasury market showed losses Friday. The yield on the benchmark 10-year Treasury note, which opened at 3.73%, finished at 3.74%. The yield on the two-year note was quoted near the end of the session at 2.16%, after opening at 2.10%.
The economic calendar was light Friday.
However, this week will see a slate of economic data, beginning tomorrow with March existing home sales. On Thursday, durable goods orders for March, initial jobless claims for the week ended April 19, continuing jobless claims for the week ended April 12, and March new home sales will be released. And Friday, the final April University of Michigan consumer sentiment index is slated for released.
Economists polled by IFR Markets are predicting 4,950 existing home sales, a 0.6% rise in durable goods orders, a 0.6% increase in durable goods orders excluding transportation, 375,000 initial jobless claims, 3.000 million continuing jobless claims, 580,000 new home sales, and a 63.2 Michigan sentiment index.
Meantime, Puerto Rico announced Friday it will sell $205 million of tobacco bonds with Citi and Bear, Stearns, & Co pricing the deal tomorrow. The transaction includes turbo bonds and maturities going out through 2058.