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
- HARRIS COUNTY HOUSTON TEXAS SPORTS REFUNDING JUNIOR LIEN SERIES B (413893CN6): This issue clocked in an average yield of 5.181% on Monday.
- PUERTO RICO COMMONWEALTH HIGHWAY AND SERIES A NATIONAL IBC (745190DH8): This issue yielded of 4.75% and 4.995% during Tuesday's and Wednesday's trading session, respectively.
- CALIFORNIA MUNICIPAL FINANCE AUTHORITY REVENUE INSURED CENTRO DE SALUD DE LOUISIANA (13048TPH0): On Thursday, this issue's yield came in at 3.999%.
- MARYLAND ST HEALTH AND HIGHER UNIVERSITY MARYLAND MEDICAL SYSTEM SERIES A (574218MY6): This issue logged in a yield of 4.086% 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.
- ILLINOIS ST TAXABLE (4521518V8)
- MARYLAND ST ST AND LOCAL FACILITIES FIRST SERIES A (574193GX0)
- SHELBY COUNTY TENNESSEE HEALTH EDUCATIONAL AND METHODIST LE BONHEUR (821697G45)
- KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY REFUNDING REPUBLIC SERVICES INCORPORATE PJ-B (49126RAD8)
- MASSACHUSETTS ST SCHOOL BUILDING AUTHORITY REFUNDING SENIOR SERIES B (576000NF6)
3 Articles Municipal Bond Investors Must Read
- Odd Allies Fight Against Taxing Municipal Bonds at Politico
- Bond Investors Wade Back Into Puerto Rico at The Wall Street Journal
- 5 Reasons Muni Bonds Will Outperform in 2013 at AdvisorOne