Top quality municipals were weaker at mid-session traders said, as the market was quietly working through the last full session of the week.
Not much was happening on Wednesday, with no bond deals slated until 2016. Trading activity was likely to be very light until after the holidays.
The market will close at 2 p.m., EST, on Thursday, ahead of the full market close on Friday. Trading will resume the Monday after Christmas for another holiday-shortened week ahead of the New Year's celebration.
Secondary Market
The yield on the 10-year benchmark muni general obligation was as much as one basis point stronger from 1.93% on Tuesday, while the 30-year yield was as much as one basis point stronger from 2.82%, according to a read of Municipal Market Data's triple-A scale.
Treasury bonds were lower on Wednesday. The yield on the two-year yield rose to 0.99% from 0.97% on Tuesday, while the 10-year Treasury gained to 2.26% from 2.24% and the 30-year Treasury yield increased to 3.01% from 2.96%.
The 10-year muni to Treasury ratio was calculated on Tuesday at 86.3% compared to 87.6% on Monday, while the 30-year muni to Treasury ratio stood at 95.2% versus 96.1%, according to MMD.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 32,937 trades on Tuesday on volume of $4.15 billion.
Primary Market
There are no bond deals of over $1 million on the negotiated or competitive calendars until after the start of the new year. Scranton-Lackawanna School District, Pa., had a $15.13 million note sale scheduled for negotiation Wednesday.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar rose $337.9 million to $3.72 billion on Wednesday. The total is comprised of $1.10 billion competitive sales and $2.62 billion of negotiated deals.
