Despite a dearth of activity in the primary or secondary markets Friday, muni yields held the past week’s gains. They closed the day’s session steady across the curve, according to the Municipal Market Data scale.
“The triple-A MMD, despite what Treasuries were doing, kept ratcheting down more and more, just given that all these guys are sitting in cash,” a trader in California said. “They pretty much have nothing else to choose from. At around 2% on the 10-year and 3% on the 30-year, munis are still more attractive than anything else out there, given risk-reward.”