Municipal Bond Weekly Roundup: March 8


March 08, 2013

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Bullish momentum dominated Wall Street this week, as a slew of upbeat economic reports had major equity indexes surging into uncharted territory, posting record-breaking all-time highs. For the most part, investors cite the market s four-year climb off its 2009 lows and the Dow s record closing to the Federal Reserve s aggressive and unprecedented monetary stimulus measures, which have helped push equities higher by driving down yields in safe-haven assets.

Meanwhile in U.S. economic news, the Labor Department posted encouraging data as private sector employment, initial jobless claims, payrolls, and unemployment reports all came in better-than-expected. As a result, investors turned away from safe-haven assets, piling into riskier equities.

Weekly Overview:

Date Total Trades Dollar Volume $1m+ Trades S&P National Muni Bond Fund (MUB) Performance
Monday 03/04/2013 38,959 $4,267,187,867 831 -0.10%
Tuesday 03/05/2013 43,948 $4,952,981,648 1102 -0.04%
Wednesday 03/06/2013 43,810 $5,603,685,601 1281 -0.30%
Thursday 03/07/2013 42,428 $5,739,395,020 1442 -0.40%
Friday 03/08/2013 35,523 $4,523,771,458 1080 -0.53%

The municipal bond market started the month with a relatively active week, after February saw nearly 1,050 new issues hit the market. Trading volumes, however, were relatively lower than last week. 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 lower throughout the week, posting losses during each session [see more Market Activity].

Most Active Issues This Week

  • UNIVERSITY WISCONSIN HOSPS AND CLINICS SERIES A (915260CD3): This issue exchanged hands 137 times on Monday with an average dollar volume coming in at $9,485,000. It was also the most active issue on Tuesday and Wednesday.
  • CONNECTICUT ST SERIES B (20772JMC3): On Thursday, this issue's dollar volume topped $21,895,000 and it traded 124 times.
  • NEW YORK ST SERIES A (649791HU7): This issue exchanged hands 126 times on Friday, logging in an incredible dollar volume of over $21,730,000.

Highest Yielding Issues This Week

Million Dollar Club

These municipal bonds boasted some of the largest dollar trade amounts this week, all of which topped $5,000,000.

3 Articles Municipal Bond Investors Must Read

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