The tax-exempt market was steady on Monday morning as traders said summer vacations continued to take market participants away from their desks.
"It's dead and slow," a New York trader said. "It's a Monday and there are summer vacations." He added that muni yields were flat from Friday's levels.
In the primary market this week, $5.40 billion is expected to come to market, down from last week's revised $6.30 billion. In negotiated deals, $4.16 billion is expected to be priced, up from last week's revised $3.99 billion. On the competitive calendar, $1.24 billion is expected to be auctioned, down from last week's revised $2.31 billion.
On Friday, the 10-year
The Treasury yield curve flattened. The two-year yield increased one basis point to 0.28%, but the benchmark 10-year yield dropped one basis point to 1.65% while the 30-year yield fell two basis points to 2.73%.