Taylor Riggs

The municipal bond market gained strength as the week progressed, supported by the debt ceiling resolution and Puerto Rico’s investor call Tuesday, which helped calm concerns about the ability of the territory’s issuers to pay their obligations.

Against a backdrop of a softer tone and the week’s largest deals arriving in the tax-exempt market, Puerto Rico bonds traded mostly flat Wednesday, a day after commonwealth officials attempted to reassure investors of its willingness and ability to pay debts.

The tax-exempt market saw light trading volume Wednesday with an overall weaker tone as the biggest deals of the week priced in the primary.

Puerto Rico bonds opened steady Wednesday morning with light volume and few block size trades following an investor call Tuesday by the commonwealth seeking to reassure investors of its ability to pay its debt.

Puerto Rico officials sought to quell bankruptcy concerns over the commonwealth's issuers, calling such an outcome "completely out of the question" on an investor call Tuesday afternoon.

Puerto Rico general obligation and Sales Tax Financing Corp. bonds traded in odd-lot and block size trades Tuesday ahead of the commonwealth's investor call at 2 p.m. Eastern.

The tax-exempt market opened on a quiet note Tuesday morning as traders slowly got back to work following a three-day weekend.

Municipal bond market transactions dwindled Friday as traders prepared for a three-day holiday weekend, though that didn’t stop yields from rising on Puerto Rico bonds.

The municipal bond market remained quiet as Friday afternoon progressed after the Treasury bond rally faded and traders started to head home early for the three-day weekend.

Prices fell and yields rose in the municipal bond market this week as traders dealt with uncertainty surrounding the government shutdown, looming debt ceiling, and negative headlines out of Puerto Rico.

Trading activity opened on a slow note Friday morning, after a week of negative headlines stemming from Puerto Rico, ahead of a three-day holiday weekend.

The investment grade municipal bond market traded lower Thursday, following Treasuries, though most traders eyed higher yielding bonds out of Puerto Rico in the secondary.

The municipal bond market traded weaker, following Treasuries, as traders offered mixed views on Puerto Rico debt following headlines this week.

Puerto Rico bonds out for bid in the secondary market were the focus of the municipal bond market, following news Wednesday that Massachusetts secretary of the commonwealth William Galvin announced his securities division began an inquiry to determine investors' exposure to Puerto Rico.

Puerto Rico bonds continued their price decline Wednesday after hedge fund manager Kyle Bass called the bonds “completely junk” and Massachusetts Secretary of the Commonwealth sent letters to large mutual fund managers inquiring about exposure to the territory’s credits.

A flurry of bids-wanted continued to surface throughout the trading session Wednesday, particularly Puerto Rico issues, though traders said sellers were cautious to give up bonds to buyers demanding near double-digit yields.

The municipal bond market continued its trudge with a steady to slightly weaker tone for the third session this week as the debt ceiling and government shutdown kept buyers on the sidelines.

The pricing of many of the week's largest deals Tuesday generated little excitement as traders made selective purchases in an otherwise quiet municipal bond market.

Municipal bonds "traded by appointment" Tuesday afternoon as market participants said business can get done on a selective basis.

The tax-exempt market opened on a steady note for the second session this week as bonds were bid out to buyers but there wasn't enough movement to push prices in either direction.