With little supply in the new issue market Thursday, municipal bonds traded a few basis points stronger, decoupling from a Treasury selloff.

Traders in the tax-exempt market said the primary calendar was light and there was little activity in the secondary, but the few trades that did cross looked stronger. "It has probably ticked up a few basis points here and there and moved opposite with Treasuries," a Los Angeles trader said. "And that has to do with no supply."

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.