The municipal market was slightly firmer Thursday, amid light to moderate secondary trading activity, as the Los Angeles Community College District brought $900 million of taxable Build America Bonds to the primary and the municipal scale dipped to 3.98% on the long end.
“The market continues to feel good,” a trader in Chicago said. “Stock markets are off. The Treasury auctions are out of the way. There is a relief rally. We are running well. There is still a scarcity of good credits. Prices are aggressive. The spreads between the lower quality and higher quality have tanked.”