Coming off Thursday's strong gains, the muni market strengthened for a second session Friday, though traders said activity was quieter than recent sessions.

"There is definitely firming going on out there," a Virginia trader said, adding Utah 5s of 2019 traded at 1.71%, four basis points through the Municipal Market Data scale. Morgan Stanley won the bid for $217 million of Utah general obligation bonds in the competitive market Thursday and bonds on most maturities were priced firmer than the MMD scale.

"Demand is strong and just a few basis points stronger," he said. "The trades that are getting done have a stronger bias but by virtue of it being a Friday it can't warrant as big of a move as Thursday."

In the primary Friday, Piper Jaffray priced for retail $228.5 million of University of Connecticut general obligation bonds, rated Aa3 by Moody's Investors Service, AA by Standard & Poor's, and AA-minus by Fitch Ratings.

Yields on the first series of $174.3 million ranged from 0.50% with a 3% coupon in 2015 to 4.33% with a 4.25% coupon in 2033. Bonds maturing in 2014 were offered via sealed bid. Bonds maturing in 2030 and 2032 were not offered for retail. The bonds are callable at par in 2023.

Yields on the second series of $54.2 million ranged from 0.40% with a 3% coupon in 2015 to 3.14% with a 4% coupon in 2024. Bonds maturing in 2014 were not offered for retail. The bonds are callable at par in 2023.

Thursday, yields on the Municipal Market Data scale ended as much as nine basis points lower. The two-year yield slid seven basis points to 0.45% and the 10-year yield dropped eight basis points to 2.67%. The 30-year yield fell five basis points to 4.01%.

Yields on the Municipal Market Advisors scale ended as much as seven basis points lower Thursday. The 10-year yield fell seven basis points to 2.85% and the 30-year yield slid four basis points to 4.12%. The two-year yield fell two basis points to 0.54%.

Treasuries were stronger for a second consecutive session Friday. The benchmark 10-year and 30-year yields fell two basis points each to 2.56% and 3.61%, respectively. The two-year yield slid one basis point to 0.33%.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.