Taylor Riggs

Trading activity in the tax-exempt market slowed Wednesday afternoon as the 2 p.m. Federal Open Market Committee meeting announcement approached.

The municipal market headed lower, following Treasuries, on better-than-expected GDP numbers released Wednesday morning.

The largest deals in the primary market priced Tuesday to be greeted with strong demand as underwriters were able to reprice bonds higher and lower yields.

Participants in the tax-exempt market continued to hold cash Tuesday as little trading activity surfaced.

The tax-exempt market focused on new deals pricing Tuesday morning as the week's largest deals hit the market before Wednesday's Federal Open Market Committee meeting announcement.

Light trading activity in the tax-exempt market persisted through Monday's session as momentum slowed from Friday's 10 basis point rally.

Traders described the tax-exempt market as apathetic in Monday's afternoon trading session as buyers were hesitant to put money to work ahead of Wednesday's Federal Open Market Committee meeting announcement, GDP numbers, and more expected outflows from muni bond funds.

Following a 10 basis point rally Friday, buyers took a step back Monday morning and waited for new issues to price before putting money to work.

The tax-exempt market made an about-face Friday, posting gains for the first time in over a week after traders said municipal bond yields looked very cheap relative to Treasuries.

The tax-exempt market posted gains Friday afternoon though traders remained skeptical about how long a rally could last.

The tax-exempt market stabilized Friday after a week of selling as relatively cheap municipal bonds attracted buyers.

Secondary trading activity was the focus of the municipal bond market Thursday with most of the primary deals priced earlier in the week.

The tax-exempt market continued to weaken Thursday afternoon, though traders said they were starting to feel more positive about the market.

Trading in the tax-exempt market stayed centered on short-term bonds, following a similar trading pattern Wednesday, after significant losses on longer maturing debt kept buyers inside seven years.

Bellwether issuers, including triple-A rated Maryland and the Bay Area Toll Authority, tempted buyers in the primary market Wednesday, though it wasn't enough to offset an overall weaker tone as large institutions sold municipal bonds in the secondary.

Positive reception for new deals in the primary market wasn't enough to offset large institutional sellers in the secondary as yields on bonds maturing beyond 20 years jumped.

Tax-exempts outperformed Treasuries Wednesday morning as buyers in the new issue market helped slow the rise in yields.

Yields on tax-exempt bonds drifted higher Tuesday as inexpensive new deals by issuers including New York City dragged down prices in the secondary market.

Underwriters were able to lower yields on cheap deals priced Tuesday as the short end of the curve showed the most strength.

Pricing of new deals started early Tuesday as underwriters sold bonds that were attractively priced, pulling the secondary market weaker along with it.