"I would agree that munis are much stronger," a New York trader said, "especially considering where we are doing trades from Friday to today."

Munis continued to strengthen Monday afternoon, according to the Municipal Market Data scale. The two-year to 12-year yields fell as much as two basis points while yields outside 13 years dropped between one and four basis points.

On Friday, the 10-year closed at 1.74%, hovering seven basis points above its record low of 1.67% set Jan. 18. The 30-year yield finished at a record low of 2.96%, beating the previous record low of 3.02% set on Wednesday. The two-year was steady at 0.32% for the 30th consecutive session.

Treasuries were stronger Monday on economic worries. The two-year and the benchmark 10-year yield each dropped three basis points to 0.23% and 1.46%, respectively. The 30-year yield plunged four basis points to 2.54%.

In the negotiated market, Loop Capital Markets priced for retail $202.4 million of Pennsylvania Turnpike Commission senior lien turnpike revenue bonds, rated Aa3 by Moody's Investors Service and A-plus by Standard & Poor's and Fitch Ratings. Institutional pricing is expected Tuesday. Pricing was not available by press time.

On the competitive calendar, JPMorgan won the bid for $100.9 million of King County, Wash., triple-A rated general obligation bonds. Pricing details were not yet available.

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