Activity in the tax-exempt market started to stall Friday afternoon as traders said bid lists have started to wind down.
"For the most part it's been fairly light trading today," a Virginia trader said. "We've seen a fair amount out for bid and a couple of lists but it's winding down even more."
He added that traders are already looking to next week's issuance. "Next week should be interesting given that the supply is concentrated in two large deals but we have $9 billion to sift through in a shortened week."
On Thursday, the Municipal Market Data scale ended lower after four consecutive sessions of gains. The 10-year yield rose two basis points to 1.67% while the 30-year yield increased three basis points to 2.72%. The two-year finished steady at 0.33% for the third session.
The 10-year yield now trades 20 basis points above its record low of 1.47% set Nov. 28. The 30-year yield trades 25 basis points above its record low of 2.47% set Nov. 28.
Treasuries held steady after gaining Friday morning. The benchmark 10-year yield and the 30-year yield fell three basis points each to 1.85% and 3.04%, respectively. The two-year was steady at 0.27%.
In the primary market next week, $9.19 billion is expected to price, up from this week's revised $5.89 billion. On the negotiated calendar, $6.66 billion is expected to come to market, up from this week's revised $5.03 billion. In competitive deals, $2.53 billion is expected to be auctioned, up from this week's revised $862 million.
