Market Post: Muni Fatigue Sets in Ahead of Holiday Weekend

The municipal bond market remained quiet as Friday afternoon progressed after the Treasury bond rally faded and traders started to head home early for the three-day weekend.

The bonds markets are closed Monday for the Columbus Day holiday. "There are no strong bids and it's slow ahead of the three-day weekend," a Maryland trader said. "It could also be due to the federal government which can't get its act together."

On Thursday, yields on the triple-A Municipal Market Data scale ended as much as four basis points higher. The 10-year and 30-year yields rose four basis points each to 2.60% and 4.18%, respectively. The two-year yield fell two basis points to 0.35%.

Yields on the Municipal Market Advisors benchmark scale also ended as much as four basis points higher. The 10-year yield increased two basis points to 2.74% and the 30-year yield climbed three basis points to 4.33%. The two-year was steady at 0.55% for the third session.

Treasuries were still firmer, though they pared many of the gains made in the morning session. The benchmark 10-year yield fell one basis point to 2.68% and the 30-year yield fell two basis points to 3.73%. The two-year was steady at 0.35%.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER