The tax-exempt market ended the week on a steady note with a recent impressive rally that has pushed muni yields to record lows expected to continue as long as demand continues to outweigh supply.
“Negotiated paper was eaten alive this week,” a Chicago trader said. “It’s getting to the point where there is such a fight for the negotiated. It’s nine times oversubscribed so you’re never getting the right allocation. You put in $10 million and you get $2 million. So it’s a scramble to put money to work.”