The municipal market was slightly weaker Friday, following Treasuries. Traders said tax-exempt yields were lower by one or two basis points. “It’s a little weaker here and there, but there’s not a whole lot going on,” a trader in New York said. “I think it’s just people filling in holes in their inventories. It’s actually a decent market for a change, and you can actually buy some bonds, because there are less people around.”Trades reported by the Municipal Securities Rulemaking Board Friday were mixed. A dealer sold to a customer Puerto Rico Sales Tax Financing Corp. 6.05s of 2036 at 5.54%, even with where they were sold Thursday. Bonds from an interdealer trade of California 5s of 2037 yielded 4.96%, up two basis points from where they traded Thursday. Bonds from an interdealer trade of insured Reading School District, Pa., 4.25s of 2025 yielded 4.27%, two basis points lower than where they were sold Thursday.“There’s not a whole lot to speak of, but there is some weakness,” a trader in Los Angeles added. “People are ready for the holidays and for the year to end at this point.”The Treasury market showed some losses Friday. The yield on the benchmark 10-year Treasury note, which opened at 4.06%, finished at 4.17%. The yield on the two-year note was quoted near the end of the session at 3.19%, after opening at 3.09%.In economic data released Friday, personal income rose 0.4% in November, after a 0.2% uptick the previous month. Additionally, personal consumption was up 1.1% in November, after a revised 0.4% increase the prior month. And, the core personal consumption expenditures deflator climbed to a year-over-year 2.2% in November, following a revised 2.0% gain the previous month.Economists polled by IFR Markets had predicted a 0.5% rise in personal income, a 0.6% uptick in personal consumption, and a 1.9% reading for the core PCE deflator.The University of Michigan’s final December consumer sentiment index came in at 75.5 compared to 74.5 in the preliminary December report and 76.1 in the final November report. Economists polled by IFR Markets predicted the index would register 74.5.The economic calendar will be fairly light next week. Tomorrow, initial jobless claims for the week ended Dec. 22 will be released, along with continuing jobless claims for the week ended Dec. 15, durable goods orders for November, and the December consumer confidence index. On Friday, the Chicago purchasing managers index for December will be released along with November new home sales.Economists polled by IFR Markets are predicting 343,000 initial jobless claims, 2.625 million continuing jobless claims, a 3.0% uptick in durable goods orders, a 0.5% jump in durable goods orders excluding transportation, an 86.5 consumer confidence reading, a 52.3 level for Chicago PMI, and 720,000 new home sales.The new-issue market was light Friday.
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