The municipal market was largely unchanged Friday amid light secondary trading.
“There’s not a whole lot of activity right now, and we’re largely flat,” a trader in New York said. “Just a normal, quiet Friday, really.”
“It’s been pretty quiet,” a trader in Los Angeles said. “It’s been a bit of a sideways week, but today we’re just pretty much unchanged and quiet.”
The Treasury market showed gains Friday. The benchmark 10-year note was quoted near the end of the session with a yield of 3.68% after opening at 3.71%.
The yield on the two-year note was quoted near the end of the session at 0.83% after opening at 0.87%. The yield on the 30-year bond was quoted near the end of the session at 4.65% after opening at 4.67%.
The Municipal Market Data triple-A scale yielded 2.87% in 10 years and 3.80% in 20 years Friday, matching Thursday’s levels.
The scale yielded 4.17% in 30 years Friday, also matching Thursday’s level.
Thursday’s triple-A muni scale in 10 years was at 76.7% of comparable Treasuries and 30-year munis were 89.1%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 92.3% of the comparable London Interbank Offered Rate.
In economic data released Friday, retail sales increased 0.5% in January, beating economists’ estimates, boosted by strong sales at merchandise and electronics sales.
Excluding motor vehicles and parts, retail sales increased 0.6%, following an unchanged 0.2% decline in December. December retail sales were down a revised 0.1%.
Economists polled by Thomson Reuters had expected overall retail sales to increase 0.3% and for sales excluding autos to increase 0.5%, according to the median estimate.
The University of Michigan’s preliminary February consumer sentiment index reading was 73.8, compared to the final January 74.4 reading. Economists polled by Thomson had predicted a 75.0 reading for the index.
The expectations index was 66.9, compared to 70.1 last month. The current conditions index was 84.1, compared to 81.1 last month. Economists polled by Thomson Reuters had predicted an 81.2 reading for the current conditions index and 70.9 for the expectations index.
Business inventories decreased 0.2% in December, the first decline in three months as economists had expected an increase, while sales were up 0.9% in the month.
Inventories had increased in November and October following 13 consecutive monthly declines.
In November, inventories rose 0.5% while sales soared 2.4%.
Economists expected inventories to rise 0.3% for the month, according to the median estimate from Thomson Reuters.
Activity in the new-issue market was light Friday.