The tax-exempt market opened trading this week on a quiet note as light supply and little secondary activity kept yields flat from Friday's levels.
Ahead of the Thanksgiving holiday this week, most market participants expected munis to remain unchanged.
"It's quiet and I'd expect this week will be that way the whole time," a Chicago trader said. Treasuries were two basis points firmer while munis were steady.
Total trading volume was down 24% from the average of the previous five Monday trading sessions. Interdealer trading accounted for $271 million of volume, followed by $264 million customer sell trades and $348 million customer buy trades.
Supply is expected to be light this week ahead of Thanksgiving. The market can expect $538.2 million of bonds, down from last week's revised $6.19 billion. The negotiated market can expect $133 million, down from a revised $5.08 billion. On the competitive calendar, $405.2 million should be auctioned, down from last week's revised $1.11 billion.
On Friday, the triple-A Municipal Market Data scale ended as much as two basis points stronger after weakening for two straight sessions. The 30-year yield fell two basis points to 4.14%. The 10-year was steady for the second session at 2.66% and the two-year closed unchanged for the seventh session at 0.33%.
Yields on the Municipal Market Advisors benchmark scale ended mostly unchanged. The 10-year and 30-year yields were flat at 2.72% and 4.37%, respectively. The two-year was steady for the fifth session at 0.38%.
Treasuries were stronger Monday morning. The benchmark 10-year and 30-year yields slid two basis points each to 2.73% and 3.82%, respectively. The two-year yield fell two basis points to 0.28%.
