A small pause in rising municipal bond yields Friday afternoon wasn’t enough to give traders conviction the rally would continue with supply expected to increase in September.

Next week, new-issue supply should rise to $5.9 billion from this week’s $1.4 billion. An uptick in volume, coupled with a small rally driven mainly by gains in Treasuries, kept traders hesitant to buy.

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.