The tax-exempt market strengthened for a fourth consecutive session Friday even after this week's rally left the 10-year and 30-year yields at the lowest in three month.
"It's stronger again," a Maryland trader said. "Puerto Rico is up again." He added the new deals were well received earlier this week and the secondary is firmer.
On Thursday, yields on the triple-A Municipal Market Data scale ended as much as seven basis points stronger following a four basis point rally Tuesday and Wednesday. The 10-year yield slid three basis points to 2.50% and the 30-year yield dropped seven basis points to 4.08%. The two-year was steady at 0.35% for the 10th session.
Yields on the Municipal Market Advisors benchmark scale ended as much as five basis points firmer. The 10-year yield fell four basis points to 2.65% and the 30-year yield slid five basis points to 4.24%. The two-year was steady at 0.54% for the second session.
Treasuries were mostly flat Friday morning. The two-year and benchmark 10-year yields were flat at 0.32% and 2.51%, respectively. The 30-year yield fell one basis point to 3.60%.
