Yields remained unchanged throughout the curve on Monday, according to Municipal Market Data's Triple-A scale.
"Supply has been really low this week," a trader in Chicago said. "There has not been a lot out there, but what is out there is going to hold pretty strong."
Municipal Market Advisors' data on Friday showed the two-year, 10-year, and 30-year held steady at 0.38%, 2.32% and 3.61% respectively.
"I don't think there is going to be anything dramatic occurring in [the muni market] in the next two weeks," a second trader in Chicago said. "I think supply is going to stay low."
The total potential volume for this week is $3.9 billion, down from last week's $6.2 billion issuance, according to data provided by Ipreo and The Bond Buyer.
Issuance this year has been low, totaling $86.75 billion through April 30, compared to $122.72 billion for the same period in 2013, according to data provided by Ipreo and The Bond Buyer.
Municipal bond yields have not been following Treasuries, which weakened Monday afternoon, with the 30-year climbing three basis points to 3.40% and the 10-year benchmark inching up one basis point to 2.61%. The two-year notes were unchanged from Friday's market close at 0.43%.
"Munis did not rally like Treasuries did on Friday in the long end of the curve," the second trader from Chicago said. "I think [Treasuries rallied] mostly because of things happening in the Ukraine. It is all geopolitical right now I think."
The first trader believes tensions in the Ukraine will continue to have more of an effect on Treasuries, as Russia-Ukraine pressures did on Friday.
"Monday tends to be the most quiet day of the week as buyers look at what's coming to market later in the week," the second trader from Chicago said.
