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%.