Tax-exempt yields followed Treasury yields lower Friday as investors fled to safe-haven assets after a slew of bad economic data.

But while munis generally follow Treasuries, some traders noted that muni yields could rise as traders hit a wall with near record-low rates and on an expected increase in supply in the next few weeks.

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.