All The Bond Buyer’s long-term weekly yield indexes declined this week in the wake of Friday’s rally, during three lightly traded sessions in advance of the upcoming Christmas closure.

“The market seems to be moving sideways with a bit of a grind higher in price in the belly of the curve,” said Michael Pietronico, the chief executive officer at Miller Tabak Asset Management. “That’s probably a reflex reaction to the supply moving into next year.”

Pietronico also noted that the market this week is much quieter than in recent weeks and has a holiday feel, though “there’s some cash out there.”

“High-net-worth individuals seem more active on the buy side, which we see as a prudent strategy and expect to see more of heading into 2011,” he said. “Mutual funds though are clearly on the sidelines and raising cash to meet what might be redemptions moving forward.”

Tax-exempt yields fell anywhere from four to eight basis points Friday before the holiday slowdown that has characterized the current week. Munis have been flat to slightly firmer since Monday amid fairly light activity in both the primary and secondary markets.

In the new-issue market, New York’s Metropolitan Transportation Authority sold a $750 million Build America Bond deal Tuesday, which was upsized from $350 million.

The Bond Buyer 20-bond index of 20-year general obligation bond yields declined 15 basis points this week to 5.00%, but remained above its 4.86% level from two weeks ago.

The 11-bond GO index of higher-grade 20-year GO yields dropped 13 basis points this week to 4.74%, but remained above its 4.60% level from two weeks ago.

The revenue bond index, which measures 30-year revenue bond yields, decreased six basis points this week to 5.42%. However, it remained above its 5.32% level from two weeks ago.

The Bond Buyer one-year note index, which is based on one-year tax-exempt note yields, was unchanged this week at 0.56%.

The yield on the 10-year Treasury note declined five basis points this week to 3.35%. It remained above its 3.22% level from two weeks ago.

The yield on the 30-year Treasury bond fell 11 basis points this week to 4.45%, but remained above its 4.41% level from two weeks ago.

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 5.50%, down 13 basis points from last week’s 5.63%.

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