The municipal market remained largely unchanged Friday with a slightly weaker tone amid light activity in the secondary.
"It's quiet, there's not much going on," a trader in New York said. "We're pretty much shifting into holiday mode now. There's maybe a bit of a weaker tone if anything, but I'd just call it flat. I'm really not seeing any kind of substantive movement."
"It's been a fairly quiet session, but that's to be expected considering it's the Friday before Christmas week," a trader in Los Angeles said. "I'm not seeing much trading out in the secondary, and we're just pretty flat. Just a slow day."
The Treasury market showed losses Friday. The yield on the benchmark 10-year note opened at 3.47% and was quoted near the end of the session at 3.54%.
The yield on the two-year note opened at 0.75% and was quoted near the end of the session at 0.79%. The yield on the 30-year bond was quoted near the end of the session at 4.45% after opening at 4.42%.
Friday's Municipal Market Data triple-A scale yielded 2.88% in 10 years and 3.62% in 20 years, matching the levels seen on Thursday. The scale yielded 4.10% in 30 years Friday, matching Thursday's level of 4.10%.
As of Thursday's close, the triple-A muni scale in 10 years was at 82.8% of comparable Treasuries, 30-year munis were 92.8% of comparable Treasuries, and 30-year tax-exempt triple-A general obligation bonds were at 96.7% of the comparable London Interbank Offered Rate, according to MMD.
Trades reported by the Municipal Securities Rulemaking Board Friday showed little movement.
Bonds from an interdealer trade of taxable Chicago Metropolitan Water Reclamation District Build America Bonds 5.72s of 2038 yielded 5.67%, even with where they traded Thursday.
A dealer sold to a customer New York 5.99s of 2036 at 5.96%, even with where they were sold Thursday.
A dealer bought from a customer California 5s of 2037 at 5.69%, even with where they were sold Thursday.
Bonds from an interdealer trade of New York Liberty Development Corp. 5.25s of 2035 were traded at 5.30%, even with where they traded Thursday.
A dealer sold to a customer Wisconsin 5.75s of 2029 at 4.75%, even with where they were sold Thursday. A dealer sold to a customer Las Vegas Water District 4.25s of 2024 at 4.52%, up one basis point from where they were sold Thursday.
A dealer sold to a customer Delaware County, Ohio, 4s of 2023 at 3.50%, even with where they were sold Thursday.
A dealer bought from a customer Los Angeles Community College District 5s of 2033 at 5.01%, even with where they traded Thursday.
Bonds from an interdealer trade of taxable Massachusetts School Building Authority BABs 5.72s of 2039 yielded 5.71%, even with where they were sold Thursday.
A dealer sold to a customer taxable Detroit City School District 7.75s of 2039 at 7.74%, even with where they were sold Thursday.
The economic calendar and activity in the new-issue market was light Friday.
