The tax-exempt market continued to trade on a relatively quiet note as traders said they waited for the large New Jersey deal to price for institutions Tuesday before taking a stance on the market.

"The retail order period is out but we will have a better feel how it goes tomorrow," a New York trader said.

Goldman, Sachs & Co. priced for retail $875 million of New Jersey Transportation Trust Fund Authority transportation system bonds in a taxable and tax-exempt pricings. About $540 million is tax-exempt and $335 million is taxable. Institutional pricing is expected Tuesday.

Outside the New Jersey deal, the market continued to be quiet. "It's pretty quiet today," a New York trader said. "There is some stuff trading but no one is grabbing for bonds. There is not a ton out for bid and there's no follow through."

Still, he added there was follow through on California bonds that priced last week. The 5s of 2029 traded five basis points lower today than Friday.

In the primary market this week, $7.22 billion is expected to be priced, down slightly from last week's revised $7.51 billion. On the negotiated side, $6.46 billion should be issued, up from last week's revised $5.69 billion. In competitive deals, $760 million is expected to be auctioned, down from last week's revised $1.82 billion.

Municipal bond scales ended stronger Friday after weaker sessions earlier in the week.

Yields on the Municipal Market Data triple-A GO scale were as much as three basis points lower. The 10-year yield fell two basis points to 1.72% and the 30-year yield dropped three basis points to 2.94%. The two-year closed steady at 0.29% for the sixth session.

Yields on the Municipal Market Advisors 5% coupon triple-A benchmark scale ended as much as two basis points lower. The 10-year yield dropped two basis points to 1.79% and the 30-year yield slid one basis point to 3.05%. The two-year was steady at 0.32% for the sixth session.

Treasuries continued to gain Monday afternoon. The benchmark 10-year yield slid one basis point to 1.71% and the 30-year yield dropped four basis points to 2.88%.  The two-year was steady at 0.23%.

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