With most of the new issues for the week already priced, the tax-exempt market pulled strength from a risk-off Treasury rally.

“Munis are probably better by a basis point or two out past 10 years,” a Virginia trader said. “But it looks like they are lagging the Treasury rally.”

Outside of the small gains driven from Treasuries, the market felt quiet. “There is a focus on what new issuance there is and secondary trading seems spotty.”

In the primary, Morgan Stanley priced $450 million of Dallas Fort Worth International Airport join revenue improvement bonds, rated A2 by Moody’s Investors Service, A-plus by Standard & Poor’s, and A by Fitch Ratings.

Yields ranged from 3.01% with a 5% coupon in 2026 to 4.35% with a 4.125% coupon in 2050. The bonds are callable at par in 2022.

Yields on the Municipal Market Data scale as much as one basis point weaker Wednesday. The 10-year and 30-year yields finished steady at 1.83% and 2.98%, respectively. The two-year held steady at 0.28% for the fifth session.

The Municipal Market Advisors 5% scale also showed yields rising as much as one basis point Wednesday. The 10-year and 30-year yields closed flat at 1.89% and 3.10%, respectively. The two-year yield held steady at 0.33% for a fourth consecutive session.

Treasuries continued to post gains Thursday afternoon. The benchmark 10-year and 30-year yields slipped eight basis points each to 1.87% and 3.09%, respectively. The two-year yield fell one basis point to 0.24%.

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