The municipal bond market received a boost from Nov. 1 reinvestment money from maturing bonds and coupon payments that helped spur activity in the secondary market Friday morning.
"It's a little quiet, but there is secondary trading going on. I chalk it up to Nov. 1 coupon reinvestments," a New York trader said. "Trades are in the six- to eight-year range mostly."
The market has seen eight consecutive sessions of steady to stronger trades, with yields falling as much as 20 basis points over that time period.
On Thursday, yields on the triple-A Municipal Market Data scale ended mostly flat across the board. The two-year and 10-year yields were steady for the third session at 0.34% and 2.44%, respectively. The 30-year finished flat at 4.04% for the second session.
Over the course of the last eight trading session, the 10-year MMD yield dropped 17 basis points from 2.61% on Oct. 21. The 30-year yield slid 19 basis points from 4.23%.
Yields on the Municipal Market Advisors benchmark scale ended mostly steady across the curve. The two-year and 10-year yields were flat for the second session at 0.48% and 2.59%, respectively. The 30-year was flat for the fifth session at 4.23%.
Over the past eight trading days, the 10-year MMA yield dropped 17 basis points from 2.76% on Oct. 21. The 30-year yield fell 12 basis points from 4.35%.
Treasuries were weaker Friday morning. The benchmark 10-year yield jumped seven basis points to 2.61% and the 30-year yield climbed six basis points to 3.69%. The two-year was steady at 0.32%.