The bulls and the bears continued their tug-of-war this week, as investors digested a slew of economic news from around the globe. Disappointing ISM and labor data weighed heavily on the markets, with manufacturing, initial jobless claims, private sector jobs, and nonfarm payrolls all coming in below expectations. Meanwhile, Japan's central bank announced a series of aggressive easing measures, stating that it will double its government bond holdings in two years.
To close out the week, U.S. Treasuries surged as investors piled into the safe-haven asset; yields on 30-year bonds fell 14 basis points during Friday's session. In the municipal bond space, investors kept a close eye on California as the city of Stockton came under scrutiny [see Major Muni Implications in Stockton Trials].
Weekly Overview:
Date | Total Trades | Dollar Volume | $1m+ Trades | S&P National Muni Bond Fund (MUB) Performance |
---|---|---|---|---|
Monday 04/01/2013 | 39,355 | $5,583,543,830 | 1394 | -0.01% |
Tuesday 04/02/2013 | 44,435 | $5,050,584,176 | 1113 | 0.21% |
Wednesday 04/03/2013 | 43,536 | $6,193,783,325 | 1538 | 0.15% |
Thursday 04/04/2013 | 43,507 | $6,756,016,614 | 1731 | 0.07% |
Friday 04/05/2013 | 37,808 | $6,070,506,500 | 1557 | 0.30% |
It was a relatively active week for the municipal bond market, with trading volumes peaking on Wednesday and Thursday. The iShares S&P National Municipal Bond Fund (MUB), which seeks to measure the performance of the investment grade segment of the U.S. muni bond market, traded slightly higher but within a narrow range the week, posting modest gains on Friday [see more Market Activity].
Most Active Issues This Week
- NEW JERSEY ST TURNPIKE AUTHORITY TURNPIKE REVENUE SERIES A (6461393P8): This issue exchanged hands 164 times on Monday..
- FRANKLIN COUNTY OHIO HOSPITAL FACILITIES REFUNDING AND IMPROVEMENT OHIO HEALTH CORPORATION (353187BR7) On Tuesday, this issue traded 147 times with an average dollar volume topping $9,765,000.
- ILLINOIS ST SERIES A (452152RR4): This issue exchanged hands 156 times on Wednesday, posting a dollar volume of over $8,265,000.
- NEW JERSEY ST TURNPIKE AUTHORITY TURNPIKE REVENUE SERIES A (6461393V5): On Thursday, this issue exchanged hands 136 times and posted a dollar volume of over $16,765,000.
- ILLINOIS FINANCE AUTHORITY REVENUE LOCAL GOVERNMENT PROGRAM COMMUNITY COLLEGE (45203HQN5): This issue exchanged hands 127 times on Friday, logging in a dollar volume of $2,800,000.
Highest Yielding Issues This Week
- WISCONSIN ST HEALTH AND EDUCATIONAL FACILITIES ASPIRUS INCORPORATE OBLIGATION GROUP (97710B7X4): This issue clocked in an average yield of 4.137% on Monday.
- TEXAS TRANSPORTATION COMMISSION CENTRAL TEXAS REFUNDING FIRST TIER SERIES A (88283KAC2): This issue yielded 4.089% during Tuesday's trading session.
- PORT AUTHORITY NEW YORK AND NEW JERSEY SPECIAL OBLIGATION SPECIAL PJ-JFK INTERNATIONAL AIR TERMINAL-6 (73358EBN3): On Wednesday this issue's yield came in at 5.420%.
- WISCONSIN ST HEALTH AND EDUCATIONAL FACILITIES REFUNDING SASC INCORPORATE (97712DAS5): This issue logged in a yield of 4.900% during Thursday's session.
- PUERTO RICO PUBLIC BLDGS AUTHORITY REVENUE UNREFUNDED BALANCE GOVERNMENT FACILITIES I (745235D65): This issue yielded 5.465% during Friday's trading session.
Million Dollar Club
These municipal bonds boasted some of the largest dollar trade amounts this week, all of which topped $5,000,000.
- NEW YORK NEW YORK CITY MUNICIPAL WATER FINANCE ADJUSTED SECOND GENERAL DD-3A (64972FX43)
- OHIO ST UNIVERSITY GENERAL RECEIPTS SPECIAL PURPOSE SERIES A (677632B26)
- PUERTO RICO SALES TAX FINANCING FIRST SUBORDINATED SERIES A (74529JKJ3)
- JOBSOHIO BEVERAGE SYSTEM OHIO TAXABLE SENIOR LIEN SERIES B (47770VAZ3)