The tax-exempt market continued to gain Friday afternoon as traders expressed frustration as yields neared record low territory once again.

The municipal bond market has now seen steady to lower yields for 10 consecutive trading sessions.

"Take a guess at what munis are doing," a New York trader said. "They're higher by a few basis points."

On Thursday, the 10-year and 30-year Municipal Market Data yields fell two basis points each to 1.71% and 2.88%, respectively. The two-year closed flat for the third session at 0.30%.

Since the most recent rally streak began Sept. 17, the 10-year MMD yield has plunged 22 basis points from 1.93% while the 30-year yield has plummeted 18 basis points from the 3.06% where it traded on Sept. 17.

The 10-year yield is now at its lowest since Aug. 6 when it last touched 1.71%. It hovers only 11 basis points above its record low of 1.60% set July 26.

The 30-year yield is at its lowest since Aug. 6 when it yielded 2.87%, just nine basis points above its 2.79% record low yield hit July 25.

Treasuries pared all gains from the morning and then some on the long end. The benchmark 10-year yield was flat at 1.64% while the 30-year yield increased one basis point to 2.83%. The short-end was still stronger from morning trading as the two-year yield fell one basis point to 0.24%.

In next week's primary market, $7.45 billion is expected to be priced, down slightly from this week's revised $7.47 billion. In the negotiated market, $6.35 billion is expected to be issued, up from this week's revised $6.14 billion. On the competitive calendar, $1.1 billion should be auctioned, down from this week's revised $1.33 billion.

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