The secondary market continued to firm Friday afternoon though traders said activity started to slow.
"It's been on the lighter side but it's very firm," a Virginia trader said. "It's been back to back weeks of healthy supply but still order periods are seeing bumps."
He added people were more nervous about elevated supply than they needed to be. "The deals we participated in saw strong flows, oversubscriptions, and deals went exceptionally well. I thought after last week the market had its hands full but really now for two weeks with elevated supply the market has done better than expected."
Municipal bond scales ended a few basis points firmer Thursday after a strong session Wednesday.
Yields on the Municipal Market Data triple-A GO scale ended as much as one basis point lower. The 30-year yield fell one basis point to 2.89%. The 10-year yield finished flat at 1.70% for the second session and the two-year closed steady at 0.29% for the 10th session.
Yields on the Municipal Market Advisors 5% coupon triple-A benchmark scale ended as much as two basis points lower. The 10-year and 30-year yields fell one basis point each to 1.76% and 3.02%, respectively. The two-year was flat at 0.32% for the 10th session.
Treasuries were slightly weaker Friday afternoon. The benchmark 10-year yield increased two basis points to 1.71% and the 30-year yield rose one basis point to 2.88%. The two-year was steady at 0.23%.