The tax-exempt market kept its focus on the primary market this week as traders said a wide bid-ask spread in the secondary led to a stalemate, forcing action in the primary market where better deals can be found.
“This week has been focused on new deals and they are getting very good reception,” an Atlanta trader said. “Most maturities are oversubscribed and not just one or two times, but five or six times oversubscribed. And that creates repricing at lower yields. So there is still a lot of cash out there.”