NEW YORK – The tax-exempt market was stronger Friday afternoon as traders rushed to finish up deals before the weekend.
“We are way stronger today,” a trader in New York said. “We are getting a lot of buying here and it could be that people are getting everything wrapped up this week.”
In Friday early afternoon trading, munis were steady to firmer, according to the Municipal Market Data scale. Yields inside the six-year were flat. Yields between the six- and 14-year fell one basis point while the 15- to 18-year yield fell two basis points. Yields beyond the 19-year maturity fell one basis point.
On Thursday, the two-year muni yield closed flat at 0.36% for its seventh consecutive trading session. The 10-year yield finished steady at 1.94%. The 30-year yield fell one basis point to 3.63%.
Treasuries continued their rally Friday afternoon across the curve. The benchmark 10-year yield fell six basis points to 1.85% and the 30-year yield fell seven basis points to 2.85%. The two-year yield fell one basis point to 0.24%.
In the secondary market, trades recorded by the Municipal Securities Rulemaking Board showed firming throughout the week.
A dealer bought from a customer New York Liberty Development Corp. 5s of 2041 at 4.28%, 12 basis points lower than where they traded Tuesday.
Bonds from an interdealer trade of Humble, Texas, Independent School District 5s of 2025 yielded 2.00%, eleven basis points lower than where they traded Wednesday.
A dealer sold to a customer Oklahoma Transportation Authority 5s of 2027 at 3.25%, eight basis points lower than where they traded Monday.
Bonds from an interdealer trade of Washington 5s of 2041 yielded 4.05%, seven basis points lower than where they traded Tuesday.
