The municipal market was largely unchanged Friday, as investors departed for a long weekend.
"It's been quiet all week, but it's even more quiet than that right now," a trader in New York said. "There's literally nothing going on, especially with the early close looming, and people just can't wait to get out of here and get their three-day weekends started."
Trades reported by the Municipal Securities Rulemaking Board Friday showed little movement. A dealer sold to a customer Financial Security Assurance Inc.-backed New Jersey Educational Facilities Authority 3s of 2027 at 5.10%, even with where they were sold Thursday. Bonds from an interdealer trade of Texas' La Joya Independent School District 5s of 2034 yielded 5.09%, even with where they traded Thursday. Bonds from an interdealer trade of Springfield, Ill., 5s of 2037 at 5.14%, even with where they were sold Thursday.
The Treasury market showed some losses Friday. The yield on the benchmark 10-year Treasury note, which opened at 3.78%, finished at 3.82%. The yield on the two-year note was quoted near the end of the session at 2.37% after opening at 2.35%. The yield on the 30-year Treasury finished at 4.42% after opening at 4.37%.
"Just an overall quiet day, but that was obviously to be expected," a trader in Los Angeles said. "There were hardly any people around, and those who were here pretty much just couldn't wait to go home."
In economic data released Friday, personal income dipped 0.7% in July, after a revised 0.1% rise the previous month. Economists polled by IFR Markets had predicted a 0.1% decline.
Personal consumption climbed 0.2% in July after a revised 0.6% uptick the previous month. Economists polled by IFR had predicted a 0.2% increase.
The core personal consumption expenditures deflator rose 0.3% in July after a 0.3% jump in June. Economists polled by IFR had predicted a 0.3% uptick.
The Chicago purchasing managers' index came in at 57.9 in August after a 50.8 reading the previous month. Economists polled by IFR had predicted a 49.8 level for the index.
The final August University of Michigan consumer sentiment index came in at 63.0 after a 61.7 reading in July. Economists polled by IFR Markets had predicted a 62.0 level for the index.
Following the Labor Day weekend, a slate of economic data will be released, highlighted by Friday's release of the August non-farm payrolls report. The Institute for Supply Management's business activity composite index for August will be released today, followed tomorrow by July factory orders. Initial jobless claims for the week ended Aug. 30, continuing jobless claims for the week ended Aug. 23, and the August ISM non-manufacturing index will be released on Thursday.
Economists polled by IFR Markets are predicting a 75,000 loss in non-farm payrolls. They are also forecasting a 49.5 reading for the ISM index, a 0.1% uptick in factory orders, a 1.0% rise in factory order excluding transportation, 435,000 initial jobless claims, 3.400 million continuing jobless claims, and a 49.0 reading for the ISM non-manufacturing index.
Activity in the new-issue market was light Friday.