The tax-exempt market traded stronger Friday afternoon although traders noted activity started to die out.

"I'd say it's certainly a quiet day today," said a regional broker-dealer in the mid-east region. "It's definitely firmer and I'd put it up a solid two basis points 10 years on out. There's not enough flow today to make that a broad assessment but based on what we're seeing I'd say that."

On Thursday, the Municipal Market Data scaled ended weaker. The benchmark 10-year muni yield rose three basis points to 1.75% while the 30-year yield rose two basis points to 2.85%. The two-year remained at 0.30% for the 22nd straight trading session.
Treasuries continued to firm Friday afternoon. The benchmark 10-year yield plunged seven basis points to 1.76% while the 30-year yield dropped five basis points to 2.93%. The two-year yield fell two basis points to 0.31%.

In next week's primary calendar, the municipal bond market can expect $5.88 billion in issuance, up from this week's revised $5.28 billion. In negotiated deals, $4.60 billion is expected to be priced, up from this week's revised $3.56 billion. On the competitive calendar, $1.28 billion is expected to be auctioned, down slightly from last week's revised $1.72 billion.

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