The tax-exempt market opened with solid gains Monday morning, extending last week's rally. Prices were higher with Treasuries after Larry Summers, considered the front-runner to replace Ben Bernanke as the chairman of the Federal Reserve, withdrew his name from consideration.
The bond markets saw this as a positive and Treasuries rallied across the curve. The benchmark 10-year yield fell 10 basis points to 2.79%. The two-year and 30-year yields slid five basis points each to 0.39% and 3.79%, respectively.