The tax-exempt market held onto gains made Friday as the week opened with a mostly steady tone.

Following worse-than-expected employment numbers Friday, muni yields followed Treasury yields lower and that continued into Monday. Still, traders said activity remained light.

"It should pick up now after Labor Day but we're not seeing it yet. It's still Monday," a New York trader said. He added the market was mostly steady. "It's not weaker."

The new-issue market should lure buyers in to the market later Monday. Raymond James & Associates is expected to price for retail $384.6 million of Miami-Dade County, Fla., seaport revenue bonds in a four-pronged deal. The bonds are rated A3 by Moody's Investors Service and A by Fitch Ratings. Institutional pricing is expected Tuesday.

That deal comes as the week's calendar should pick up in volume. The market can expect $5.86 billion in new issues this week, up from last week's revised $1.43 billion. On the negotiated side, $3.76 billion is expected to be priced, up from last week's revised $1.13 billion. In competitive deals, $2.10 billion should be auctioned, up from the past week's revised $302.9 million.

Friday, yields on the triple-A Municipal Market Data scale ended as much as three basis points lower. The 10-year yield slid three basis points to 3.01% and the 30-year yield dropped two basis points to 4.49%. The two-year was steady at 0.43% for the 37th straight session.

Yields on the Municipal Market Advisors scale also ended as much as three basis points firmer. The 10-year fell two basis points to 3.14% and the 30-year yield dropped one basis point to 4.60%. The two-year closed unchanged at 0.55% for the 16th session.

Treasuries were stronger Monday for the second consecutive session. The benchmark 10-year and 30-year yields fell five basis points each to 2.88% and 3.82%, respectively. The two-year yield slid two basis points to 0.44%.

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