The tax-exempt market continued to gain Friday afternoon and many traders expect the firmer tone to continue into next week.
"It's slowly firming," a Chicago trader said. "Supply is gone. It just disappeared. I literally went away for two days on Tuesday and the 10-year Treasury yield is down almost 20 basis points. So if the 10-year stays firm and rallies, we could continue to quietly firm next week. You could see some underwriters coming in and clearing off the desk."