Activity in the tax-exempt market slowed Friday afternoon after a busier, stronger morning session.
The slowdown was welcomed by traders who saw the tax-exempt market head lower every session this week.
“It’s a typical quiet muni market on a summer Friday,” a New York trader said. “Some large funds are doing tax loss swaps.”
Thursday, yields on the Municipal Market Data scale ended as much as three basis points higher. The 10-year and 30-year yields were flat at 2.27% and 3.52%, respectively. The two-year was also steady at 0.31% for the second session.
Muni yields on the Municipal Market Advisors 5% scale also closed as much as three basis points higher. The 10-year and 30-year yields climbed three basis points each to 2.36% and 3.64%. The two-year was steady at 0.39% for the second session.
Treasuries were stronger Friday afternoon, though most gains were pared from the morning session. The two-year yield fell four basis points to 0.28% and the benchmark 10-year yield slid three basis points to 2.15%. The 30-year yield fell one basis point to 3.31%.
