The tax-exempt market continued to post gains Friday as traders some new issues that were inexpensive earlier in the week traded higher in the secondary.
"Munis are definitely stronger today," a New York trader said. "Traders are turning over a lot of items today so there is good activity."
In the primary Friday, Piper Jaffray priced for retail $228.5 million of University of Connecticut general obligation bonds, rated Aa3 by Moody's Investors Service, AA by Standard & Poor's, and AA-minus by Fitch Ratings.
Yields on the first series of $174.3 million ranged from 0.50% with a 3% coupon in 2015 to 4.33% with a 4.25% coupon in 2033. Bonds maturing in 2014 were offered via sealed bid. Bonds maturing in 2030 and 2032 were not offered for retail. The bonds are callable at par in 2023.
Yields on the second series of $54.2 million ranged from 0.40% with a 3% coupon in 2015 to 3.14% with a 4% coupon in 2024. Bonds maturing in 2014 were not offered for retail. The bonds are callable at par in 2023.
Thursday, yields on the Municipal Market Data scale ended as much as nine basis points lower. The two-year yield slid seven basis points to 0.45% and the 10-year yield dropped eight basis points to 2.67%. The 30-year yield fell five basis points to 4.01%.
Yields on the Municipal Market Advisors scale ended as much as seven basis points lower Thursday. The 10-year yield fell seven basis points to 2.85% and the 30-year yield slid four basis points to 4.12%. The two-year yield fell two basis points to 0.54%.
Treasuries pared gains from the morning session. The two-year was steady at 0.34% and the benchmark 10-year yield rose one basis point to 2.59%. The 30-year yield fell one basis point to 3.62%.
