Market Post: Secondary Higher as Bonds Freed Up in Secondary

The tax-exempt market felt stronger Friday morning as bonds were freed to trade in the secondary market and subsequently bumped in price.

"There is a firmer tone," a New Jersey trader said. "The primary deals came in cheap and were well received and now the bid side is firm on those. But the secondary is well focused and well distributed and the bid sides are up."

Municipal bond scales ended a few basis points firmer Thursday after a strong session Wednesday.

Yields on the Municipal Market Data triple-A GO scale ended as much as one basis point lower. The 30-year yield fell one basis point to 2.89%. The 10-year yield finished flat at 1.70% for the second session and the two-year closed steady at 0.29% for the 10th session.

Yields on the Municipal Market Advisors 5% coupon triple-A benchmark scale ended as much as two basis points lower. The 10-year and 30-year yields fell one basis point each to 1.76% and 3.02%, respectively. The two-year was flat at 0.32% for the 10th session.

Treasuries were slightly weaker Friday morning. The benchmark 10-year yield increased two basis points to 1.71% and the 30-year yield rose one basis point to 2.88%. The two-year was steady at 0.23%.

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