The municipal market was mostly unchanged Friday, closing out a week in which over $5.2 billion of bonds were priced in the primary market and yields rose in all the week's previous sessions.
"We're pretty unchanged," a trader in New Jersey said. "Not a lot of movement, not a lot of trading. I think a lot of people are ready for the weekend, but there's still bits and pieces getting done here and there."
Trades reported by the Municipal Securities Rulemaking Board Friday showed little movement. A dealer sold to a customer Texas' Southeast Housing Finance Corp. 6.095s of 2035 at 6.10%, even with where they traded Thursday. A dealer sold to a customer insured California 5s of 2027 at 5.48%, even with where they were sold Thursday. Bonds from an interdealer trade of New York State 5s of 2024 yielded 5.15%, even with where they were sold Thursday. Bonds from an interdealer trade of insured New York's Metropolitan Transportation Authority 5.125s of 2031 yielded 5.32%, even with where they traded Thursday.
"It's fairly quiet," a trader in New York said. "There's not much trading in the secondary market right now, sort of a typical Friday trade. And obviously there's nothing on the new-issue calendar today. So I'd say we're pretty flat, though out long, you're still seeing at least a weaker tone, if not a basis point or so cheaper."
The Treasury market mostly showed losses today, though it posted some gains on the short end. The yield on the benchmark 10-year note, which opened at 2.86%, finished at 2.89%. The yield on the two-year note was quoted near the end of the session at 0.98% after opening at 1.01%. The yield on the 30-year bond, which opened at 3.61%, was quoted near the end of the session at 3.68%.
As of Thursday's close, the triple-A scale in 10 years was at 115.2% of comparable Treasuries, according to Municipal Market Data. Additionally, 30-year munis were 134.4% of comparable Treasuries. Also, as of the close Thursday, 30-year tax-exempt triple-A rated general obligation bonds were at 151.1% of the comparable London Interbank Offered Rate.
Activity in the new-issue market was light Friday, after an active week. However, even greater primary market issuance is expected this week, led by a $1.5 billion sale of bonds and notes for Wisconsin. The deal will be priced by Barclays Capital Thursday, after a retail order period tomorrow and Wednesday.
In the largest competitive deal of 2009 to date, Wake County, N.C., tomorrow is scheduled to sell just over $500 million of GOs.
In economic data released Friday, the University of Michigan's preliminary March consumer sentiment index reading was 56.6, compared to the final February reading of 56.3. Economists polled by Thomson Reuters had predicted a 55.0 reading for the index.