Friday's market was mixed in the secondary in morning trading sessions as the primary took a rest after a particularly active week. With over $4 billion scheduled in negotiated issuances alone for next week, traders took the break to reposition holdings to welcome the incoming deals.
After becoming free-to-trade at 11:30am, the new City of Mesa, Arizona utility systems revenue refunding bonds jumped up the top of most-traded lists, with yields slipping up to 18 basis point on the issuance's 3.25s of 2029, according to Municipal Securities Rulemaking Board's disclosure website EMMA.
Trading volume on Buckeye Tobacco doubled on Friday compared to the day prior, with $32 million of bond traded exclusively in round lot trades, according to EMMA. Yields softened on the 5.875s of 2047 to 7.75% from a low of 7.39% on Thursday, according to EMMA.
Yields on the New York City Sales Tax Asset Receivable Corporation bonds softened, beginning to turn around to initial yield offering levels. The 5s of 2026 rose to 2.41% after hitting a low of 2.52% in round lot trading Friday morning, according to EMMA. The bonds were originally issued with an initial offering yields of 2.52%, according to EMMA>
Scales were sluggish on Friday, lacking primary activity to indicate directionality. Bonds maturing between 2015 through 2022 were unchanged from Thursday's close, while bonds maturing between 2023 and 2044 weakened up to one basis point, according to Municipal Market Data's triple-A 5% curve provided by TM3.
