The tax-exempt market continued to slow Friday afternoon as traders closed their books for the week and prepared for the weekend.
"It's tough to get a good read," a San Francisco trader said. "I've seen things a little tighter."
Overall for the week, the trader said activity was light. "It seemed quiet this week. I haven't seen many deals I liked. We put in for a few of the Tampa, Fla., bonds but it was 10 to 15 times oversubscribed so we chose not to take our allotment."
Looking ahead to next week, the calendar looks light but activity should pick up as September progresses. "We are getting back into the swing of things after a slow August," he said. "The calendar is not looking great but it will start to pick up next week. I have heard some rumblings about the calendar picking up soon."
On Thursday, the 10-year Municipal Market Data yield rose five basis points to 1.78% while the 30-year yield increased four basis points to 2.92%. The two-year closed at 0.29% for the 30th consecutive session.
Treasuries rallied in the morning but pared those gains in the afternoon. The two-year yield fell one basis point to 0.26% while the benchmark 10-year yield dropped two basis points to 1.65% The 30-year yield increased one basis point to 2.81%.
In next week's calendar, $3.74 billion in issuance is expected, up from this week's revised $1.40 billion. In the negotiated market, $2.33 billion is expected to be priced, up from this week's revised $709.3 million. On the competitive calendar, $1.41 billion is expected to be auctioned, up from this week's revised $686.5 million.