Top-shelf municipal bonds were mostly unchanged at mid-session, according to traders, who were turning their attention ahead to next week's new issue calendar.
Ipreo estimated volume for next week at $8.7 billion. The calendar is made up of $6.70 billion of negotiated deals and $2.04 billion of competitive sales.
U.S. non-farm payrolls rose 156,000 in December, while the unemployment rate rose to 4.7% from 4.6% in the previous month, the Labor Department reported.
The jobs gain was less than expected, but the unemployment rate came in as forecast. Economists polled by IFR Markets had predicted a gain of 175,000 new jobs last month and a rise in the unemployment rate to 4.7%. For all of 2016, job gains averaged 180,000 a month, down from the 229,000 in 2015.
Secondary Market
The 10-year benchmark muni general obligation yield was flat from 2.24% on Thursday, while the yield on the 30-year GO was steady from 2.99%, according to a read of Municipal Market Data's triple-A scale.
U.S. Treasuries turned weaker on the jobs report. The yield on the two-year Treasury rose to 1.21% from 1.17% on Thursday, while the 10-year Treasury yield gained to 2.41% from 2.37%, and the yield on the 30-year Treasury bond increased to 3.00% from 2.97%.
On Thursday, the 10-year muni to Treasury ratio was calculated at 94.7% compared with 93.8% on Thursday, while the 30-year muni to Treasury ratio stood at 101.0%, versus 99.5%, according to MMD.
MSRB: Previous Session's Activity
The Municipal Securities Rulemaking Board reported 48,752 trades on Thursday on volume of $13.16 billion.
Week's Most Actively Traded Issues
Some of the most actively traded issues by type in the week ended Jan. 6 were from New York and California, according to
In the GO bond sector, the New York City 4s of 2043 were traded 16 times. In the revenue bond sector, the Metropolitan Water District of Southern California 5s of 2037 were traded 26 times. And in the taxable bond sector, the California 7.6s of 2040 were traded 19 times.
Week's Most Actively Quoted Issues
California and Ohio names were among the most actively quoted bonds in the week ended Jan. 6, according to Markit.
On the bid side, the California taxable 7.7s of 2030 were quoted by 49 unique dealers. On the ask side, the Bowling Green State University of Ohio taxable 6.73s of 2039 were quoted by 36 unique dealers. And among two-sided quotes, the California taxable 7.6s of 2040 were quoted by 23 unique dealers.
Week's Primary Market
Barclays Capital priced the Board of Regents of the Texas State University System's $427.9 million of Series 2017A revenue financing system revenue and refunding bonds. The deal is rated Aa2 by Moody's Investors Service and AA by Fitch Ratings.
JPMorgan Securities priced the Board of Regents of the University of North Texas' $197.44 million of Series 2017A revenue financing system refunding and improvement bonds. The deal is rated Aa2 by Moody's and AA by Fitch.
Wells Fargo Securities priced the District of Columbia's $301.67 million of Series 2017 refunding revenue bonds for Georgetown University. The deal is rated A2 by Moody's and A by S&P Global Ratings.
Wells Fargo also priced the University of Pittsburgh, Pa.'s $512.63 million of Series 2017A taxable university refunding bonds. The deal is rated Aa1 by Moody's and AA-plus by S&P.
Citigroup priced the New York State Housing Finance Agency's affordable housing bonds, consisting of $53.995 million of Series 2017A Series A climate bond certified green bonds, not subject to the alternative minimum tax, and $66.53 million of Series 2017B non-AMT bonds. The deal is rated Aa2 by Moody's.
Piper Jaffray priced the El Paso Independent School District, Texas' $181.84 million of Series 2017 unlimited tax school building bonds. The deal, which is backed by the Permanent School Fund guarantee program, is rated triple-A by Moody's and Fitch.
Piper also priced the Ysleta Independent School District, Texas' $168.35 million of Series 2017 unlimited tax school building bonds. The deal is backed by the PSF and rated triple-A by Moody's and S&P.
In the competitive arena, the Cherry Creek School District No. 5, Colo., sold $150 million of Series 2017 general obligation bonds. JPMorgan won the deal with a true interest cost of 3.38%. The deal is rated Aa1 by Moody's and AA by S&P.
The Florida Department of Transportation competitively sold $148.21 million of Series 2016C turnpike revenue refunding bonds. Wells Fargo won the issue with a TIC of 3.21%. The deal is rated Aa2 by Moody's and AA by S&P and Fitch.
In the short-term competitive arena, Colorado sold $375 million of Series 2016B education loan program tax and revenue anticipation notes, due June 28. Four groups won different amounts of the deal, including Wells Fargo, Morgan Stanley, Citi and Bank of America Merrill Lynch. The deal is rated MIG1 by Moody's and SP1-plus by S&P.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $3.13 billion to $16.38 billion on Friday. The total is comprised of $3.01 billion of competitive sales and $13.38 billion of negotiated deals.
Lipper: Muni Bond Funds Report Outflows
Municipal bond funds again experienced outflows as investors continued to pull cash out of the market, according to Lipper data released late Thursday.
The weekly reporters saw $911.938 million of outflows in the week ended Jan. 4, after outflows of $1.637 billion in the previous week.
The four-week moving average remained in the red at negative $1.632 billion after being negative $1.957 million in the previous week. A moving average is an analytical tool used to smooth out price changes by filtering out fluctuations.
Long-term muni bond funds had outflows, losing $226.857 million in the latest week after shedding $583.675 million in the previous week. Intermediate-term funds had outflows of $636.984 million on top of outflows of $703.236 million in the prior week.
National funds had outflows of $613.824 million after outflows of $1.196 billion in the previous week. High-yield muni funds reported outflows of $244.713 million in the latest reporting week, after outflows of $351.680 million the previous week.
Exchange traded funds saw inflows of $607.714 million, after inflows of $151.304 million in the previous week.
