The municipal market was mostly weaker Thursday, with 10-year tax-exempt yields backing up roughly eight basis points, amid light to moderate secondary trading activity.

“We’re seeing a full scale reversion to the mean now,” a trader in New York said. “We were hanging out down at unsustainably low levels for quite some time, and it was bound to turn around. That turnaround has been in effect a good week now, and I don’t see any reason why it’s going to stray from that until we give back a lot of August’s gains.”

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.