Severe weakening earlier in the week followed by a mid-week rally led to a quiet trading session Friday as yields ended mostly steady across the curve.

“It seems like there is trading in some pockets,” a New York trader said. “It was busy in the morning and it has gotten lighter since lunch. It’s a summer Friday.” The activity in the morning appeared to avoid following Treasury yields higher. “There are some trades through the Municipal Market Data scale and the July 1 cash could be the reason,” he said. Money from coupon and principal repayments is expected to hit the market July 1.

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