The tax-exempt market continued to trade with steady yields Monday as the municipal bond market prepared itself for increased issuance expected to start pricing Tuesday.

"The market is slow and flat," a New York trader said, adding it feels like a quiet Monday. And after Thursday's downgrade by Moody's Investors Service of Puerto Rico's Sales Tax Financing Corp. bonds to A2 from Aa3, yields traded flat Monday afternoon.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.