Taylor Riggs

Tax-exempt market participants were out early Tuesday morning as traders looked to buy bonds in the new year.

A 10-year low of new municipal bond issuance is what was on everyone's mind in 2011.

The week between Christmas and New Year's has typically been one of the slowest weeks of the year. But in 2011, the last week of December was anything but boring.

The week between Christmas and New Year’s has typically been one of the slowest weeks of the year. But this year, which has been atypical for many reasons, the last week of December has been anything but boring.

It has come down to the last minute for traders looking for bonds during the final trading session of 2011.

Nearly all of The Bond Buyer's weekly yield indexes declined this week, as the municipal market followed Treasuries and grew firmer by several basis points in each session.

Dealers just can’t seem to get enough of munis.

NEW YORK – Dealers just can’t seem to get enough of munis.

Ahead of January reinvestment money, dealers are hoarding short-term bonds and waiting to sell them after Jan. 1 when demand spikes.

Although most market participants assumed the week between Christmas and New Year’s would be dead, there is a surprising amount of activity in muni land. The primary market is expecting a decent deal Thursday and traders say not everyone has closed up shop for the year.

So much for a slow week between Christmas and New Year's.

NEW YORK – So much for a slow week between Christmas and New Year’s.

Munis continue to trade firmer, following Treasuries, as year-end buyers buoy tax-exempts.

The tax-exempt market was firmer Wednesday morning as buyers seemed eager to eat up leftovers from the year.

Last-minute dealmaking in the tax-exempt market is forcing sellers to lower prices if they want to make a trade as the year wraps up.

NEW YORK – Last minute deal making in the tax-exempt market is forcing sellers to lower prices as the year-end rush takes over.

Traders are sitting on their hands Tuesday afternoon preferring to keep bonds rather than give them up cheaply.

Some dealers are in the tax-exempt market early looking to sell retail bonds on the cheap, while others in the market take extended vacation and sleep off the effects of the Christmas holiday.

Traders on a pre-holiday Thursday looked to the new year for direction in the tax-exempt market.

NEW YORK – As Thursday quieted, traders looked to the New Year for direction in the tax-exempt market.