Taylor Riggs

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.

After losses earlier in the week, the tax-exempt market posted its second session of gains as a large deal priced in the primary market.

The tax-exempt market continued to post gains Friday as traders some new issues that were inexpensive earlier in the week traded higher in the secondary.

Inexpensive prices on new issues lured buyers back into the marketplace as municipal bond market resumed its slump during the past week.

Coming off Thursday's strong gains, the muni market strengthened for a second session Friday, though traders said activity was quieter than recent sessions.

The tax-exempt market ended firmer Thursday, reversing four consecutive sessions of losses as new deals priced cheap in the primary and were met with demand from buyers.

The new issue market continued to price cheap, allowing underwriters to lower yields in repricings in an overall stronger market.

After four consecutive sessions of posting losses, the municipal bond market outperformed Treasuries Thursday morning as yields fell faster than Treasury yields.

Selling pressure in the secondary didn't stop borrowers from tapping the primary markets Wednesday as the largest deal of the week priced.

A lackluster 10-year Treasury auction gave way to a weaker secondary muni market as traders said yields were two to three basis points higher in afternoon trading.

Supply continued to emerge in the primary markets Wednesday as more large borrowers tested demand, putting pressure on the secondary markets.