Wall Street was off to a rocky start this week as news from the eurozone prompted a broad market sell-off. Investors turned their attention to Cyprus as it is considering plans to impose a tax on bank depositors, a precondition for receiving a $13.08 billion bailout from the European Commission, the ECB and the IMF. The debt-ridden island nation was, however, close to a deal to raise sufficient funds to unlock a bailout from the central bank, which helped quell investors' fears. Bond traders, however, remained relatively cautious ahead of Monday's ECB deadline to withdraw support from Cyprus s banking system.
Weekly Overview:
Date | Total Trades | Dollar Volume | $1m+ Trades | S&P National Muni Bond Fund (MUB) Performance |
---|---|---|---|---|
Monday 03/18/2013 | 37,769 | $4,136,543,830 | 886 | 0.02% |
Tuesday 03/19/2013 | 42,487 | $5,760,615,214 | 1327 | 0.16% |
Wednesday 03/20/2013 | 44,362 | $6,650,782,526 | 1895 | -0.10% |
Thursday 03/21/2013 | 42,418 | $6,923,093,840 | 1840 | -0.08% |
Friday 03/22/2013 | 35,698 | $5,555,134,906 | 1450 | 0.28% |
The municipal bond market had relatively active week, with trading volumes peaking on Wednesday. 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 within a narrow range the week, peaking on Tuesday and Friday [see more Market Activity].
Most Active Issues This Week
- MONROE COUNTY GEORGIA DEVELOPMENT AUTHORITY VARIOUS GEORGIA POWER COMPANY RMKT (610530FD4): This issue exchanged hands an incredible 902 times on Monday, with its dollar volume coming in at $23,030,000.
- MONROE COUNTY GEORGIA DEVELOPMENT AUTHORITY GEORGIA POWER COMPANY PLANT SCHERER PJ (610530FC6): On Tuesday, this issue traded 135 times.
- MARYLAND ST ST AND LOCAL FACILITIES FIRST SERIES A (574193HB7): This issue exchanged hands 149 times on Wednesday.
- NEW JERSEY ST TURNPIKE AUTHORITY TURNPIKE REVENUE SERIES A (6461393P8): This issue exchanged hands 628 times on Thursday, posting a dollar volume of over $232,385,000. It was also the most active issue on Friday.
Highest Yielding Issues This Week
- PUERTO RICO ELECTRIC POWER AUTHORITY POWER SERIES TT (74526QKX9): This issue clocked in an average yield of 5.135% on Monday.
- SHELBY COUNTY TENNESSEE HEALTH EDUCATIONAL AND REFUNDING TREZEVANT MANOR PROJECT SERIES A (821697H77): This issue yielded of 5.375% during Tuesday's trading session.
- HARRIS COUNTY HOUSTON TEXAS SPORTS REFUNDING JUNIOR LIEN SERIES B (413893CN6): On Wednesday this issue's yield came in at 5.25%.
- BELLFLOWER CALIFORNIA UNIFIED SCHOOL DISTRICT 2012 ELECTION SERIES A (079437MG1): This issue logged in a yield of 4.208% during Thursday's session.
- PUERTO RICO PUBLIC BLDGS AUTHORITY REVENUE REFUNDING GOVERNMENT FACILITIES SERIES U (745235R37): This issue logged in a yield of 5.717% on Friday.
Million Dollar Club
These municipal bonds boasted some of the largest dollar trade amounts this week, all of which topped $5,000,000.
- DENVER COLORADO CITY AND COUNTY AIRPORT SERIES B (249181V21)
- NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY REFUNDING SCHOOL FACILITIES CONSTRUCTION SERIES K (645916Y76)
- NEW JERSEY ST TURNPIKE AUTHORITY TURNPIKE REVENUE SERIES A (6461393R4)
2 Articles Municipal Bond Investors Must Read
- New Threat to Municipal Bonds: Lower State Taxes at Barron's
- What's Causing the Sell-off In Muni Bonds? at Sober Look