The tax-exempt market turned its attention to the secondary Tuesday morning as the primary offered little direction.
Traders said there was some buying and the market felt stronger.
"There is no primary so we are a little busy in the secondary," a New York trader said. "There is some buying and it's a bit stronger."
In the primary market, Piper Jaffray & Co. is expected to price $90 million of California's Ohlone Community College GO refunding bonds, rated Aa2 by Moody's Investors Service and AA by Standard & Poor's.
On Monday, the 10-year Municipal Market Data yield and the 30-year yield dropped three basis points each to 1.76% and 2.90%, respectively. The two-year closed at 0.29% for the 23rd consecutive session.
Since munis began the most recent rally on Aug. 21, the 10-year yield has plummeted 14 basis points while the 30-year yield has plunged 12 basis points, pushing yields down to levels not seen since early August.
The 10-year MMD yield is now trading 16 basis points above its record low of 1.60% set July 26 and the 30-year yield is hovering 11 basis points above the 2.79% record low set July 25.
Treasuries were stronger again Tuesday for the second straight session. The benchmark 10-year yield and the 30-year yield fell one basis point each to 1.64% and 2.75%, respectively. The two-year was steady at 0.28%.