Taylor Riggs

With most of the new issues pricing Tuesday, the secondary market took traders' attention Wednesday ahead of the impending Federal Open Market Committee meeting announcement.

The tax-exempt market saw light trading ahead of the Federal Open Market Committee meeting announcement later Wednesday afternoon.

Trading on basic supply and demand patterns, the municipal bond market ended firmer Tuesday as buyers placed aggressive bets on limited supply.

The tax-exempt market continued to take direction from the primary market as deals were priced aggressively and higher demand with light new issuance kept bond prices higher.

Traders eyed deals in the primary market Tuesday after several days of firmer trades in the secondary market. Activity is expected to be fairly active ahead of Wednesday's Federal Open Market Committee meeting announcement.

The tax-exempt market posted its strongest rally in more than a month Monday as yields fell almost 10 basis points on a small new-issue calendar and news that Larry Summers — who had been the front-runner to replace Ben Bernanke as the chairman of the Federal Reserve — withdrew his name from consideration.

The rally in the tax-exempt market started to slow a bit from the morning's big gains, though traders said the market was still stronger. Traders said bond prices are also being supported by recent poor economic news, and the possibility the Federal Reserve will taper less than what was originally thought.

The tax-exempt market opened with solid gains Monday morning, extending last week's rally. Prices were higher with Treasuries after Larry Summers, considered the front-runner to replace Ben Bernanke as the chairman of the Federal Reserve, withdrew his name from consideration.

The tax-exempt market ended the week on a strong note, posting gains with Treasuries as buying confidence increased as the week progressed.

The tax-exempt market made gains in every session this week as buyers became more confident about participating in the market as the week progressed.

The tax-exempt market appeared to find its footing this week as buyers felt comfortable entering the market as the Treasury market showed stability.

The tax-exempt market was stronger again Friday morning, riding the wave of a higher Treasury market over the past few sessions.

With more buying conviction than the market has seen in months, the municipal bond market posted strong gains as yields on triple-A benchmark scales fell as much as eight basis points.

The municipal bond market climbed higher in price as light supply and expected slowing in outflows from municipal bond funds created an opportunity for buyers.

The tax-exempt market made a definitive shift Thursday morning with the market posting gains as traders said yields were high enough to finally look attractive to buy.

Activity in the secondary market picked up Wednesday with waning demand in the primary markets as traders said buyers were cautious ahead of continued outflows from municipal bond funds, next week’s Federal Reserve meeting, and negative headlines from Puerto Rico and Detroit.

Traders in the tax-exempt market said the secondary was more active Wednesday as additional buyers and sellers jumped in to participate. Still, traders were hesitant to call the market stronger.

Investment grade tax-exempt bonds showed small improvements Wednesday morning, following a firmer Treasury market, though high-yield bonds continued to drop in price.

A majority of the week’s largest new issues priced in the municipal bond market Tuesday, bringing in demand from buyers on the short-end of the curve.

Traders in the tax-exempt market focused on new issues in the primary market Tuesday as most yields were lowered on bonds maturing within 10 years.