The tax-exempt market took a breather Thursday morning, trading mostly flat after seven straight days of firming that pushed bond prices higher and yields lower by double digits.

In the face of weaker Treasuries and no supply to provide direction to the market, the municipal bond rally slowed following a run up, traders said. "There is no supply," a New York trader said. "Treasury weakness will probably halt the rally."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.