The municipal market is benefitting from the absence of traders and brokers who are on vacation this week as Treasuries continue a slide that began last week. Without active participants, yields on tax-exempt bonds have largely remained steady even as Treasury rates weaken.

"The only thing we're seeing right now is a reaction in Treasuries, which have been down every day this week," a trader in New Jersey said in an interview. "With the Treasury and taper headlines, you'd think we'd slide a little bit, but a lot of people have closed the books for the year."

Year-end silence isn't always the case, the trader pointed out. Last At the end of last year, the market was affected by expiring George W. Bush-era tax cuts.

"There's nothing like that and I still think there's money to be had in the front of the curve, which is going to be pretty steady," the trader said.

Treasury yields were a few basis points higher Thursday morning, led by a gain of two basis points on the two and 30-year yields. The two-year rose to 0.42% and the 30-year to 3.92%. The yield on the 10-year benchmark was one basis point higher at 3.00%.

Yields on the Municipal Market Data triple-A scale Tuesday were unchanged.

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