NEW YORK – The tax-exempt market is fairly quiet Thursday early afternoon as traders say secondary trades have slowed as the end of the week approaches and primary deals have finished pricing.

“Supply has dropped off,” a Chicago trader said. “If there wasn’t Illinois debt next week, it would be next to no supply. And there are rumors that coupon payments could be considerably higher in the next months.”

He added flows were great Wednesday, but have slowed today. “Today is firm and we’re seeing some more spread products come in. But the high-grade names are asleep today. There is a little more spread product, but otherwise it is very quiet.”

Munis were steady Thursday, according to the Municipal Market Data scale.

On Wednesday, the two-year yield closed steady at 0.31% for the sixth consecutive trading session while the 30-year ended flat at 3.25% for the third consecutive trading session. The 10-year yield jumped two basis points to 1.87%.

Treasuries were stronger Thursday afternoon after weakening all week. The benchmark 10-year yield fell three basis points to 1.96% while the 30-year yield dropped two basis points to 3.13%. The two-year yield fell one basis point to 0.27%.

In the primary market, Loop Capital Markets priced $293.9 million of Dallas-Fort Worth International Airport joint revenue refunding and improvement bonds, rated A1 by Moody’s Investors Service and A-plus by Standard & Poor’s and Fitch Ratings. Pricing details were not available by press time.

In the competitive market, Bank of America Merrill Lynch won the bid for $70.1 million of Virginia Public School Authority revenue bonds, rated Aa1 by Moody’s and AA-plus by Standard & Poor’s and Fitch.

Yields ranged from 0.25% with a 2.5% coupon in 2013 to 2.80% with a 5% coupon in 2028. Credits maturing between 2015 and 2017, in 2026 and 2027, and between 2029 and 2032 were sold but not available. The bonds are callable at par in 2022.

In the secondary market, trades reported by the Municipal Securities Rulemaking Board showed firming Thursday.

A dealer sold to a customer Illinois 3.321s of 2013 at 0.80%, five basis points lower than where they traded Wednesday.

A dealer bought from a customer Washington 5s of 2024 at 2.52%, three basis points lower than where they traded Wednesday.

A dealer bought from a customer North Carolina Medical Care Commission 5s of 2036 at 4.16%, three basis points lower than where they traded Wednesday.

A dealer bought from a customer Ohio hospital revenue 5s of 2038 at 3.86%, one basis point lower than were they traded Wednesday.

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