Taylor Riggs

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.

The secondary market took a backseat to the primary as some of the week’s largest deals priced Tuesday, including New Jersey’s Transportation Trust Fund Authority and triple-A rated Columbus, Ohio.

The tax-exempt market extended losses for a fourth consecutive trading session Friday as municipal bond yields followed Treasury yield higher.

The tax-exempt market continued to head lower Friday afternoon as the benchmark 10-year Treasury yield broke through 2.85%.

Municipal bonds traded weaker in every session this week as most primary deals were priced cheaply to attract buyers while secondary sellers on longer-maturing bonds pushed rates higher.

The tax-exempt market opened with fewer bid lists than earlier in the week as the market had a quieter tone.

The tax-exempt market continued to head lower Thursday afternoon with Treasury yields leading the way.

The tax-exempt market headed lower, following Treasuries and equities, over fears the Federal Reserve will soon start tapering its $85 billion a month bond purchases after better-than-expected economic news released Thursday morning.

The municipal bond market ended two basis points weaker on the long-end of the curve as buyers stayed focused on short duration bonds.

Yields in the tax-exempt market were flat to two basis points weaker Wednesday, not rising nearly as much as Tuesday, as traders said the secondary market was stagnant.

Buyers in the tax-exempt market continued to stay focused on the short-end of the curve, allowing issuers in the primary to demand higher prices for bonds maturing before 2020. On longer maturing bonds, issuers had to raise yields to entice buyers.