The better-than-expected October non-farm payrolls report released Friday morning continued to pressure fixed income markets with municipal and Treasury yields jumping as investors sold safe haven credits for riskier assets.
The better employment numbers - coming in at 204,000 versus the expected 125,000 - also increased fears that the Federal Reserve would taper its $85 billion a month bond purchases sooner than expected.
"Munis are off like a prom dress," a Chicago trader said, adding yields were rising more as the day progressed with some in the 10-year range higher by almost 10 basis points.
Munis outperformed Treasuries which had an even bigger selloff. The benchmark 10-year Treasury yield jumped 16 basis points to 2.76% and the 30-year yield increased 13 basis points to 3.85%. The two-year yield rose three basis points to 0.33%.
On Thursday, the triple-A Municipal Market Data scale ended as much as three basis points stronger after a stronger session Wednesday. The 10-year yield slipped two basis points to 2.49% and the 30-year yield fell three basis points to 4.08%. The two-year was steady for the eighth session at 0.34%.
Yields on the Municipal Market Advisors benchmark scale also ended as much as three basis points stronger. The 10-year yield fell one basis point to 2.64% and the 30-year yield dropped three basis points to 4.27%. The two-year was flat for the seventh session at 0.48%.