Market Post: Market Calms After Whipsaw Week

The tax-exempt market opened on a steady tone Friday morning as traders digested the week's rebound after losses earlier in the week.

"It's not pulling back along with Treasuries and so far it's flat or maybe down just slightly at most," a New York trader said. "There are some trades through the Municipal Market Data scale and the July 1 cash could be the reason."

July 1 is expected to see money hit the market from coupon and principal payments.

Thursday, yields on the Municipal Market Data scale ended as much as eight basis points lower. The 10-year yield slid five basis points to 2.56% and the 30-year yield dropped eight basis points to 3.83%. The two-year was steady at 0.50% for the second session.

Yields on the Municipal Market Advisors 5% scale fell as much as eight basis points Thursday. The 10-year yield fell six basis points to 2.74% and the 30-year yield dropped eight basis points to 3.96%. The two-year yield fell two basis points to 0.53%.

Treasuries were weaker Friday morning after two sessions of gains. The benchmark 10-year yield increased four basis points to 2.52% and the 30-year yield rose two basis points to 3.56%. The two-year yield increased one basis point to 0.37%.

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