Activity was focused on the secondary market Monday afternoon as bonds maturing within 10 years were under the most pressure.

With no new deals pricing Monday, traders said underwriters were busy figuring out price levels.

"Everybody is trying to get a lay of the land as far as where the market should be based on Friday's move," a North Carolina trader said. "Some of the trades that are going through today look to be more retail oriented and seem to be at decent levels. Inside 10 years is under the most pressure."

Still, this trader said many bonds still look overpriced. "Stuff priced in the secondary is still too rich. New deals are going to readjust the market."

Friday, yields on the Municipal Market Data scale ended as much as 12 basis points higher. The 10-year yield increased 10 basis points to 2.66% and the 30-year yield rose 12 basis points to 3.95%. The two-year yield increased two basis points to 0.52%.

Yields on the Municipal Market Advisors scale also ended as much as 12 basis points higher Friday. The 10-year yield rose 10 basis points to 2.82% and the 30-year yield increased 12 basis points to 4.07%. The two-year yield rose two basis points to 0.55%.

Treasuries continued to post gains. The benchmark 10-year yield slipped six basis points to 2.66% and the 30-year yield fell four basis points to 2.65%. The two-year yield fell three basis points to 0.37%.

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