The Bond Buyer’s weekly yield indexes declined this week, as the municipal market grew slightly firmer in each of the week’s sessions.
“Munis are feeling pretty good. We’ve been firming up this week, and today, we’re at least unchanged, if not better by one or two basis points,” said Evan Rourke, portfolio manager at Eaton Vance. “There’s not a tremendous calendar the next 30 days. It’s slow in December, and then it’s slow in January as well, so bonds are a little scarce, and it’s a little grabby. There’s not a lot of supply.”
In the primary market, Massachusetts upsized its sale of taxable Build America Bonds to $956 million from $500 million. Goldman, Sachs & Co. priced the bonds Tuesday.
The Bond Buyer 20-bond index of 20-year general obligation bond yields declined nine basis point this week to 4.24%. That is the lowest level for the index since Oct. 8, when it was 4.06%.
The 11-bond index of higher-grade 20-year GO yields also dropped nine basis points this week to 3.97%, which is the lowest it has been since Oct. 8, when it was 3.80%.
The revenue bond index, which measures 30-year revenue bond yields, fell five basis points this week to 4.98%. That is the lowest level for the index since Oct. 29, when it was 4.95%.
The yield on the 10-year Treasury note rose eight basis points this week to 3.39%, which is the highest it has been since Nov. 12, when it was 3.46%.
The yield on the 30-year Treasury bond rose eight basis points this week, to 4.33%. That is the highest the yield has been since Nov. 12, when it was 4.40%.
The Bond Buyer one-year note index, which is based on one-year tax-exempt note yields, dropped four basis points this week to an all-time low of 0.52%. The previous record low was 0.54% on Oct. 21. The index began on July 12, 1989.
The weekly average yield to maturity on The Bond Buyer’s 40-bond municipal bond index, which is based on 40 long-term municipal bond prices, finished at 5.43%, down two basis points from last week’s 5.45%.