The tax-exempt market appeared headed to end the week on a weaker tone, extending a five-day streak that traders said should not last much longer.
"The relative tone is definitely a little bit weaker but I don't see it lasting too long," a New York trader said. "It seems like the typical summer retreat here. With net supply still negative by a lot we'll see accounts reemerge shortly."
He added munis this week have been backing up with Treasuries, which have been trading off of headlines news. "Just wait until the next flurry of EU news."
And despite some weakening in the market, "yield is still being very well received."
On Thursday, the 10-year
Treasuries were stronger Friday morning. The benchmark 10-year yield dropped five basis points to 1.65% while the 30-year yield fell three basis points to 2.73%. The two-year yield traded down one basis point to 0.27%.