Tax-exempt bonds in the secondary market traded with firm levels on Friday as traders said high-grade bonds saw demand from buyers.
Triple-A rated general obligation bonds out for the bid traded at "healthy" levels, a Virginia trader said. "There is plenty to bid in the secondary and there are a lot of smaller pieces. Levels seem firm in here."
Activity wasn't robust enough to push the market higher, though traders said yield levels were near Thursday's prices.
On Thursday, the triple-A Municipal Market Data scale ended as much as four basis points weaker. The 10-year and 30-year yields rose four basis points each to 2.66% and 4.16%, respectively. The two-year closed unchanged for the sixth session at 0.33%.
Yields on the Municipal Market Advisors benchmark scale ended as much as four basis points higher for a second straight session. The 10-year yield rose three basis points to 2.72% and the 30-year yield climbed four basis points to 4.37%. The two-year was steady for the fourth session at 0.38%.
Treasuries continued to strengthen on longer maturing bonds. The benchmark 10-year yield slid four basis points to 2.75% and the 30-year yield fell five basis points to 3.84%. The two-year yield rose two basis points to 0.30%.