James Ramage

NEW YORK — Well-priced new issuance and a “fully active” secondary on Wednesday fueled another robust day in the municipal market.

The municipal market is operating efficiently Wednesday, primary market deals are seeing strong interest and higher prices. And buying in the secondary continues to move yields, as well.

The municipal market Wednesday is seeing decent follow-through from Tuesday’s strong trading session. Traders say they continue to see some large blocks from customers on the offer side who are trying to take advantage of the recent run-up.

The municipal market served up a hot feast Tuesday as a banquet of new supply met a hungry investor base that’s flush with reinvestment cash and anxious to buy before the primary goes on holiday.

The municipal market served up a hot feast Tuesday as a banquet of new supply met a hungry investor base flush with reinvestment cash and anxious to buy before the primary goes on holiday.

Investors with full pockets are diving head-first into the municipal market primary and secondary Tuesday, hungry for product.

The municipal market has hurtled from the gate with a confident stride Tuesday, outperforming Treasuries early as the bulk of the week’s new issuance filters in.

The municipal market steered its own course Monday, concerned with its own technicals and indicators.

NEW YORK — The municipal market steered its own course Monday, concerned with its own technicals and indicators.

The rush to reinvest December and January coupon money should keep the next few days active in the municipal market.

Sufficiently strong technicals have the municipal market on sound footing to absorb this week’s coming supply.

Municipal bond investors were determined to put money to work Friday in the face of falling yields and a dearth of high-quality blocks.

An appetite for high-grade blocks in the muni market secondary is meeting scarce supply, making those that traders find more expensive.

Secondary trading has been active Friday morning. Yields in the belly of the curve have fallen, particularly in the six- to nine-year range.

Investors fled municipal bond mutual funds this past week. Muni bond funds saw outflows after seven straight weeks of inflows.

The municipal bond market followed up a holiday week with relatively steady yields in the face of increasing supply, slack Treasuries and a stock market rally.

November saw a solid month of new municipal bond issuance for 2011, but it paled in comparison with the same period in 2010, when Build America Bond issuance was particularly strong.

Traders anticipate that the recent delicate balance between supply and demand in the muni market will be maintained even as issuance ramps up this week in the face of rollover funds.

The December-January reinvestment season in the municipal bond market will arrive at a time of rock-bottom yields and historically low new issuance.

The Thanksgiving holiday is expected to significantly cool off new supply in the primary market this week.