The tax-exempt market was stronger Monday, following Treasuries, snapping an eight-day streak of consecutive losses. Traders focused on the reduced supply in the primary expected this week after munis tumbled under last week’s largest new-issuance calendar of the year.
“Munis are stronger,” a Chicago trader said. “The calendar has subsided and there are some big names in the market like Illinois and higher-yielding names. It’s much more constructive.”