Munis extended their selloff Thursday as macro issues continue to plague financial markets.
Refinitiv MMD's scale was cut six to 12 basis points at its 12:40 p.m. read, pushing the 10-year to 3.96%-3.98% and the 30-year to 4.99%-5.01%. The last time the 30-year MMD was above 5% was January 2011.
The ICE AAA yield curve was cut three to 11 basis points at 12:30 p.m., while Bloomberg BVAL saw yields rise eight to 10 basis points.
Muni yields are following U.S. Treasury yields higher Thursday, as USTs tumbled in reaction to a stronger-than-expected purchasing managers index figure, which means a rate hike is "pretty much sealed in" at the next Federal Open Market Committee meeting, said Sweta Singh, founding partner and portfolio manager at City Different Investments.
The selloff in munis this week is "against a backdrop of historic bid wanted in competition volume, continued rate volatility, tax-loss selling [and] unfavorable technicals," said J.P. Morgan strategists led by Peter DeGroot.
In secondary trading, Wisconsin 5s of 2027 were at 3.17% Thursday. Minnesota 5s of 2027 at 3.30% versus 3.25% Wednesday. Florida State Board of Education 5s of 2028 at 3.37%. New York City 5s of 2029 at 3.78%-3.75%.
NYC Transitional Finance Authority 5s of 2035 at 3.95%-3.94%. University of Michigan 5s of 2037 at 3.95%-3.97% versus 3.89%-3.85% Tuesday. Washington 5s of 2038 at 4.30%.
San Antonio, Texas, 5s of 2051 at 5.10% versus 5.00% Tuesday. Richmond, Virginia, 5s of 2054 at 5.12%-5.11% versus 4.97% on 9/17 and 5.01% on 9/15.
