The tax-exempt market opened on a quiet note Friday, extending for another day a steady tone as the government shutdown and looming debt ceiling debate pushed traders to the sidelines.
Light new issue supply this week and next week, along with a pickup in outflows from municipal bond funds, didn't help spur activity.
"It's quiet in the muni market," a New York trader said. "There are not as much bids-wanted out there and no jobs number because of the shutdown. People might just be looking towards the deals next week."
On Thursday, yields on the triple-A Municipal Market Data scale were mostly unchanged Thursday. The 10-year and 30-year yields were flat for the second session at 2.54% and 4.11%, respectively. The two-year was steady for the third session at 0.37%.
Yields on the MMA 5% AAA benchmark scale were unchanged across the board. The 10-year and 30-year yields were flat at 2.69% and 4.26%, respectively. The two-year closed unchanged at 0.54% for the 11th session.
Treasuries were weaker Friday after a steady session Thursday. The benchmark 10-year yield rose three basis points to 2.65% and the 30-year yield increased two basis points to 3.73%. The two-year yield rose one basis point to 0.34%.