The tax-exempt market rallied as much as two basis points Friday extending a double-digit rally that began earlier in the week as new issues were well received and Puerto Rico debt traded higher in the secondary market.

California general obligation bonds had the most volume in the secondary market Friday afternoon following a more than $2 billion pricing in the new issue market earlier in the week.

The general market was firmer Friday afternoon with activity on par with volume in the past five Fridays.

“COFINAs are also one of the largely traded names but it’s pretty much even with the past five Fridays and the maturities with the most volume are trading flat on the day,” a Chicago trader said, referring to sales tax bonds from Puerto Rico. Interdealer block trades made up the majority of activity.

“It’s stronger again,” a Maryland trader said. “Puerto Rico is up again.” He added the new deals were well received earlier this week and the secondary is firmer.

In the secondary market, trades compiled by data provider Markit showed strengthening. Yields on Atlanta Airport 5s of 2018 fell four basis points to 1.20% and New Jersey’s Tobacco Settlement Financing Corp. 5s of 2041 slid three basis points to 7.28%.

On Friday, yields on the triple-A Municipal Market Data scale ended as much as two basis points stronger. The 10-year and 30-year yields fell one basis point each to 2.49% and 4.07%, respectively. The two-year was steady at 0.35% for the 11th session.

Yields on the Municipal Market Advisors benchmark scale ended as much as one basis point firmer. The 10-year and 30-year yields slid one basis point each to 2.64% and 4.23%, respectively. The two-year yield fell one basis point to 0.53%.

Treasuries were mostly flat Friday though longer maturing bonds were stronger. The two-year and benchmark 10-year yields were flat at 0.32% and 2.51%, respectively. The 30-year yield fell one basis point to 3.60%.

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