NEW YORK – Traders in the tax-exempt market took off for the weekend early as trading halted by Friday afternoon.
“Things just got real quiet,” a New York trader said, referring to a slow day in trading on a almost summer Friday afternoon. “Munis are about even.”
The tax-exempt market was slightly firmer Friday afternoon after a mixed week, according to the Municipal Market Data scale. Yields inside six years were steady while yields outside seven years fell as much as two basis points.
On Thursday, the 10-year yield fell two basis points to 1.87% while the 30-year yield dropped one basis point to 3.17%. The two-year was steady at 0.32% for the 10th straight session.
Treasuries were stronger after a weaker session Thursday. The benchmark 10-year yield dropped four basis points to 1.59% while the 30-year yield fell three basis points to 2.70%. The two-year yield fell two basis points to 0.29%.
Looking to next week, the municipal market can expect $8.33 billion in new issuance, down from this week’s revised $11.76 billion. The negotiated market can expect $6.44 billion, down from this week’s revised $10.4 billion. On the competitive calendar, $1.89 billion is expected to be priced, up from this week’s revised $1.36 billion.