Taylor Riggs

The tax-exempt market held steady Thursday afternoon even with a firmer Treasury market. Market participants looked to finalize trades ahead of what is expected to be a quiet Friday before the Labor Day weekend.

The tax-exempt market opened with lighter activity as traders said bond yields were flat to two basis points higher.

Muni yields headed higher Wednesday, reversing Tuesday’s gains, as the market softened after the New York City Housing Development Corp. sold nearly $700 million in revenue bonds, the last major deal of the week.

The tax-exempt market outperformed Treasuries Wednesday and yields on municipal bonds rose less than their taxable counterparts.

With the majority of the new issues priced earlier in the week, the municipal bond market opened on a quieter note Wednesday morning.

The tax-exempt market ended three basis points stronger Tuesday as the week’s largest deals, including Texas and California, priced. Still, traders expressed doubts about the firmer tone and said it was unlikely to last.

The tax-exempt market stood on firmer footing Tuesday though traders cautioned they weren't eager to buy bonds as many headwinds still face the market.

A mostly steady tone persisted Tuesday morning, following Monday's flat to slightly stronger bias as traders prepared for two large deals from Texas and California in the competitive market.

Plagued by 13 consecutive weeks of outflows from municipal bond mutual funds, including August’s largest outflow this week, the municipal bond market headed lower for another session Friday.

After weakening Friday morning, the tax-exempt market started to regain some losses in the afternoon trading session, though traders noted activity dropped off significantly after lunch.

The tax-exempt market ended softer every session this week as selling pressure from municipal bond funds and illiquidity pushed bond prices lower.

A firmer Treasury market Friday morning wasn't enough to provide support for municipal bonds as losses continued.

Two large high-grade borrowers priced in the primary market Thursday amid a choppy and illiquid secondary market, with buyers choosing to stay on the short end of the curve.

Buyers in the municipal bond market looked to the front end of the curve for value, though traders said they were cautious about buying much of anything Thursday.

The tax-exempt market continued to see a high volume of bids wanted surface Thursday morning, with dealers showing Detroit Public School bonds in the secondary.

The Dormitory Authority of the State of New York was the focus of the municipal bond market Wednesday as traders said the $443 million sale was attractively priced, allowing the issuer to accelerate the institutional sale and cut yields.

The Dormitory Authority of the State of New York accelerated institutional pricing to Wednesday on its $443 million issue, lowering yields as much as 10 basis points after retail investors placed $450 million in orders.

Strong demand from retail investors should allow the Dormitory Authority of the State of New York to accelerate its institutional order period a day, even though bid lists continue to surface in the secondary market.

The tax-exempt market ended weaker for a sixth session as bids wanted in the secondary pushed prices down. Still, that didn’t stop the week’s largest issuers from tapping the market, including the first Detroit name to appear since the city’s July 18 bankruptcy filing.

Traders in the tax-exempt market gobbled up the high yields offered by Michigan Finance Authority in the first Detroit deal to price since the city’s bankruptcy filing July 18.