The municipal market finished slightly weaker Friday in light secondary-trading activity. Traders said tax-exempt yields were higher by one or two basis points."We're down a little bit, but it's quiet," a trader in New York said. "Treasuries are down a little bit again, and munis are a little cheaper again, but it's not more than a basis point, maybe two in spots. Overall, it's pretty quiet, not a whole lot going on."
"We're down a bit, but I think we're closer to flat than to being really off," a trader in Los Angeles said. "At most, we're off two basis points, but through most of the curve, it's closer to one, or less than that. But the tone is weaker."
Trades reported by the Municipal Securities Rulemaking Board Friday showed losses.
A dealer sold to a customer New York's Liberty Development Corp. 5.25s of 2035 at 5.98%, up two basis points from where they traded Thursday.
A dealer sold to a customer Clark County, Nev., taxable Build America Bonds 7.05s of 2029 at 6.94%, up one basis point from where they were sold Thursday.
Bonds from an interdealer trade of California taxable BABs, 7.5s of 2034 at 7.96%, one basis point higher than where they traded Thursday.
Bonds from an interdealer trade of insured Los Angeles Unified School District 4.5s of 2028 yielded 5.48%, two basis points higher than where they were sold Thursday.
A dealer sold to a customer Dallas Area Rapid Transit taxable BABs, 6s of 2044 at 6.05%, up one basis point from where they traded Thursday.
A dealer sold to a customer Dormitory Authority of the State of New York 5s of 2039 at 5.08%, two basis points higher than where they were sold Thursday.
The Treasury market showed some losses Friday. The yield on the benchmark 10-year note, which opened at 3.57%, was quoted near the end of the session at 3.65%.
The yield on the two-year note was quoted near the end of the session at 1.00% after opening at 0.98%.
The yield on the 30-year bond, which opened at 4.45%, was quoted near the end of the session at 4.55%.
As of Thursday's close, the triple-A muni scale in 10 years was at 82.8% of comparable Treasuries, according to Municipal Market Data.
Additionally, 30-year munis were 102.5% of comparable Treasuries. Also, as of Thursday's close, 30-year tax-exempt triple-A general obligation bonds were at 108.5% of the comparable London Interbank Offered Rate.
In economic data released Friday, housing starts came in at 582,000 in June, after a revised 562,000 the previous month. Economists polled by Thomson Reuters had predicted 530,000 housing starts.
Building permits came in at 563,000 in June, after 518,000 the previous month. Economists polled by Thomson had predicted 520,000 building permits.
Activity in the new-issue market was light Friday.