The Bond Buyer’s yield indexes were narrowly mixed this week, as three sessions of losses were sandwiched between two days of gains.
“We were stronger, followed by weaker, followed by stronger, so that probably comes out not too different from where we were a week ago,” said Fred Yosca, managing director and head of trading at BNY Capital Markets.
“Not that nothing happened, but there was no bid last week, and there seemed to be some business generated towards the end of the week, and a little firming up this week. On balance, it’s a little weaker, but it’s a much better situation than it was three business days ago.
“The Treasuries rallied until yesterday, which was helping the crossover ratio, but the absolute yields were not real high and the crossover ratio was not very good compared to where we’ve been over the last six months,” Yosca said. “That situation changed as muni yields rose over the last couple weeks. You got to a point where absolute yields were materially higher, and the crossover ratio was a little better as Treasuries rallied.”
In the new-issue market this week, Dallas Area Rapid Transit came to market with a $1 billion transaction that consisted of $830 million of Build America Bonds. The deal was priced by Siebert Brandford Shank & Co. on Tuesday. JPMorgan the dame day priced $750 million of debt for Atlanta.
The Bond Buyer 20-bond index of 20-year general obligation bond yields was unchanged this week at 4.86%.
The 11-bond index of higher-grade 20-year GO yields was also unchanged this week at 4.60%.
The revenue bond index, which measures 30-year revenue bond yields, rose two basis points this week to 5.78%. This is the highest the index has been since March 26, when it was also 5.78%.
The 10-year Treasury note yield fell two basis points this week to 3.85%, but it remained well above its 3.71% level from two weeks ago.
The 30-year Treasury bond yield fell seven basis points this week to 4.63%, but it remained above its 4.58% level from two weeks ago.
The Bond Buyer one-year note index, which is based on one-year tax-exempt note yields, rose one basis point this week to 0.66%. It is the highest level for the index since May 20, when it was 0.74%.
The weekly average yield to maturity on The Bond Buyer 40-bond municipal bond index declined four basis points this week to 5.47%, but it remained above the 5.42% average from the week ended June 4.