The municipal market ended the week’s trading with another slightly firmer session Friday. Traders said tax-exempt yields in the secondary market were lower by two or three basis points.
“We’re doing a bit better again,” a trader in New York said. “It’s been a few weeks now of pretty much the same story in munis, day in and day out. I’m not sure how much longer we’re going to be able to continue to push yields lower and lower, but we’re still going now, and I think this should carry into next week as well. We’re probably better two, maybe three basis points overall at this point.”