The tax-exempt market was extremely quiet Friday as traders throughout the Northeast region braced for a predicted massive blizzard.
Trading volume was low as traders headed home early.
"The talk on desks is the snowstorm" and that suggests it "will be a low-volume day as the east coast braces," a Chicago trader said. "Combined with no market-moving economic news, we expect the muted secondary activity to continue."
Other traders agreed not much was happening Friday. "It's light activity," a Los Angeles trader said. "Treasuries are off so it feels dead. I'm sure it will be an early day for everyone."
In the secondary market, trades compiled by data provider Markit showed mostly firming.
Yields on New York City Transitional Finance Authority 5s of 2034 dropped three basis points to 2.84% while Wisconsin 5s of 2017 fell two basis points to 0.78%.
Yields on Philadelphia water and wastewater 5s of 2028 and District of Columbia student dormitory 5s of 2045 dropped two basis points each to 2.75% and 4.29%, respectively.
Still, other trades were weaker.
Yields on Louisiana Stadium and Exposition District 5s of 2028 jumped four basis points to 3.19% while Columbus, Ohio, 5s of 2022 increased two basis points to 1.77%.
Municipal bond market reads showed steady trading Friday.
The Municipal Market Advisors 5% coupon triple-A benchmark scale showed steady yields across the curve Friday. The 10-year yield and the 30-year yield were flat at 1.83% and 2.94%, respectively. The two-year closed unchanged at 0.35% for the tenth session.
The Municipal Market Data triple-A GO scale was not updated by press time Friday, but showed yields were steady to one basis point weaker from Thursday's levels. On Thursday, the 10-year fell one basis point to 1.80%. The 30-year yield held flat at 2.86% for the third straight session while the two-year closed at 0.34% for the ninth consecutive session.
Treasuries were slightly weaker Friday afternoon. "The benchmark 10-year yield and the 30-year yield increased one basis point each to 1.97% and 3.18%, respectively. The two-year yield also rose one basis point to 0.27%.
In the primary market next week, $4.35 billion in municipal bonds are expected, down from this week's revised $5.08 billion. On the negotiated calendar, $2.42 billion is expected to be issued, down from this week's revised $3.72 billion. On the competitive calendar, $1.93 billion should be auctioned, slightly from this week's revised $1.36 billion.
