After steady trading Thursday morning, munis followed Treasuries higher in the afternoon as the Fed and ECB disappointed equity investors and forced the risk-off trade.

"We're doing work today," a New York trader said. "Munis are up again."

Munis were steady to firmer Thursday afternoon, according to the Municipal Market Data scale. Yields inside 10 years were flat while yields outside 11 years fell one basis point.

On Wednesday, the 10-year tax-exempt yield held steady at 1.66% for the third consecutive session, closing above its record low of 1.60% set July 26. The two-year was steady at 0.29% for the fifth consecutive session. The 30-year muni yield rose one basis point to 2.85%, finishing six basis points above its record low of 2.79% set July 25.

Treasuries continued to strengthen Thursday afternoon on disappointment over the lack of action by the ECB. The benchmark 10-year dropped six basis points to 1.47% while the 30-year yield plunged seven basis points to 2.53%. The two-year yield fell one basis point to 0.23%.

In the primary market, Goldman, Sachs & Co. held preliminary pricing for $1.15 billion of Triborough Bridge and Tunnel Authority - known formally as MTA Bridges and Tunnels - general revenue refunding bonds, following a retail order period Wednesday. The bonds are rated Aa3 by Moody's Investors Service and AA-minus by Standard & Poor's and Fitch Ratings.

Yields ranged from 0.30% with a 2% coupon in 2013 to 3.29% with a 4% coupon in 2032. The bonds are callable at par in 2022.

In the competitive market, Wells Fargo Securities won the bid for $307.7 million of Missouri Board of Public Buildings special obligation refunding bonds, rated Aa1 by Moody's and AA-plus by Standard & Poor's and Fitch.

Yields ranged from 1.03% with a 5% coupon in 2018 to 2.80% with a 3% coupon in 2026. Bonds maturing between 2014 and 2017, in 2027, and in 2028 were not formally re-offered. The bonds are callable at par in 2020.

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