Wall Street was in for some choppy trading sessions this week as news concerning the latest developments in Europe and a mixed bag of economic reports hit the streets. But after Cyprus reached a last minute deal and reopened banks on Thursday, investors finally regained their confidence, pushing equity markets to record levels once again. Closing out the quarter on a high note, the Dow Jones Industrial Average logged in its best quarter in 15 years and the S&P 500 broke a six-year old high to mark a new all-time record.
Meanwhile, bond traders kept a close eye on the Cyprus saga and rising concerns over political uncertainty in Italy. Despite lingering worries, safe haven flows eased off after the reopening of Cypriot banks saw little panic. In the municipal bond space, however, investors saw a fairly quick and significant pullback, leading many to believe that the market could be in trouble in the near future.
Weekly Overview:
Date | Total Trades | Dollar Volume | $1m+ Trades | S&P National Muni Bond Fund (MUB) Performance |
---|---|---|---|---|
Monday 03/25/2013 | 38,834 | $4,878,543,830 | 805 | -0.17% |
Tuesday 03/26/2013 | 41,053 | $4,817,739,080 | 1063 | 0.01% |
Wednesday 03/27/2013 | 41,717 | $6,325,971,577 | 1582 | 0.05% |
Thursday 03/28/2013 | 26,647 | $3,984,338,780 | 996 | 0.18% |
It was a relatively quiet week for the municipal bond market, with trading volumes peaking on Wednesday and falling significantly on 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 within a narrow range the week, posting modest gains on Thursday [see more Market Activity].
Most Active Issues This Week
- HARRIS COUNTY TEXAS CULTURAL EDUCATION REFUNDING HOSPITAL MEMORIAL HERMAN (414009GP9): This issue exchanged hands 227 times on Monday..
- NEW JERSEY ST TURNPIKE AUTHORITY TURNPIKE REVENUE SERIES A (6461393P8) On Tuesday, this issue traded 133 times with an average dollar volume topping $10,950,000. This issue was also the most active issue during Wednesday's session.
- METROPOLITAN TRANSPORTATION AUTHORITY NEW YORK TRANSPORTATION SERIES B (59259YZE2): This issue exchanged hands 73 times on Thursday, posting a dollar volume of $7,375,000.
Highest Yielding Issues This Week
- PUERTO RICO PUBLIC BLDGS AUTHORITY REVENUE REFUNDING GOVERNMENT FACILITIES SERIES U (745235R37): This issue clocked in an average yield of 5.695% on Monday.
- NORTH CAROLINA MEDICAL CARE COMMISSION REFUNDING FIRST MORTGAGE UNITED METHODIST (65820YJU1): This issue yielded of 4.600% during Tuesday's trading session.
- PUERTO RICO COMMONWEALTH REFUNDING PUBLIC IMPROVEMENT SERIES A (4514LB89): On Wednesday this issue's yield came in at 5.676%.
- TEXAS ST AFFORDABLE HOUSING CORPORATION HDSA TEXAS AFFORDABLE HOUSING POOL (88271FEQ2): This issue logged in a yield of 6.998% during Thursday's session.
Million Dollar Club
These municipal bonds boasted some of the largest dollar trade amounts this week, all of which topped $5,000,000.
- WASHINGTON ST VARIOUS PURPOSE SERIES 2011A (93974CSV3)
- NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY REFUNDING SCHOOL FACILITIES CONSTRUCTION SERIES K (645916Y76)
- ILLINOIS FINANCE AUTHORITY REVENUE ILLINOIS INSTITUTE OF TECHNOLOGY-A (45200BYG7)
- VIRGINIA ST HOUSING DEVELOPMENT AUTHORITY SUBORDINATED SERIES C-4-RMKT 04/11/13 (92812UK31)
3 Articles Municipal Bond Investors Must Read
- Muni's Have Had It... This Time For Real at Dragonfly Capital
- The New Fixed Income World at ETF Database
- 3 Signs That Municipal Bonds Could Be in Trouble at CNBC