The tax-exempt market showed signs of slowing, with traders noting the Labor Day holiday period was in full effect - at least in the retail market.
"It's like a library in here," a New Jersey trader said. "It's quiet - trading wise. And also quiet in the literal sense. Not a single person is on the phone in here."
Still, he added a small issue of Texas multi-family housing bonds were downgraded to BB from A-minus, which was helping keep the market active. "We are doing a little damage control today," he said referring to the downgrade.
While it's an extremely quiet week in the primary market, Bank of America Merrill Lynch priced for retail $196.8 million of Columbus, Ohio, taxable and tax-exempt general obligation, various-purpose and limited refunding bonds in four series. The bonds are rated triple-A by the major rating agencies. Pricing details were not available by press time.
On Friday, the
The gains on Friday pushed muni yields back down to levels not seen since August 13 when the 10-year closed at 1.76% and the 30-year finished at 2.92%.
Treasuries continued to post gains Monday afternoon. The benchmark 10-year yield dropped four basis points to 1.65% while the 30-year yield fell three basis points to 2.76%. The two-year was steady at 0.28%.