The municipal market was quiet and mostly flat Friday, as the summer doldrums continued."It's fairly quiet," a trader in New York said. "Not a lot of movement. You can maybe pick up a basis point or two out long, but the short and intermediate part of the curve is totally flat."

"Some business is getting done, and there are a decent number of trades out there, but I don't really think too many people are involved," a trader in Los Angeles said. "Most people are sort of on the sidelines, but the people that need to get stuff done are getting it done. But we're quiet, and pretty flat."

The Treasury market showed losses Friday. The yield on the benchmark 10-year Treasury note, which opened at 3.44%, was quoted near the end of the session at 3.57%. The yield on the two-year note was quoted near the end of the session at 1.12%, after opening at 0.98%. And the yield on the 30-year bond, which opened at 4.24%, was quoted near the end of the session at 4.36%.

As of Thursday's close, the triple-A muni scale in 10 years was at 85.7% of comparable Treasuries, according to Municipal Market Data. Additionally, 30-year munis were 107.1% of comparable Treasuries. Also, as of Thursday's close, 30-year tax-exempt triple-A rated general obligation bonds were at 110.0% of the comparable London Interbank Offered Rate.

Trades reported by the Municipal Securities Rulemaking Board Friday were flat to slightly firmer. A dealer sold to a customer Dormitory Authority of the State of New York Build America Bonds 5.63s of 2039 at 5.60%, even with where they traded Thursday. A dealer sold to a customer California BABs 7.5s of 2034 at 7.25%, even with where they were sold Thursday. A dealer sold to a customer Texas Transportation Commission BABs 5.52s of 2039 at 5.50%, one basis point lower than where they traded Thursday. Bonds from an interdealer trade of University of California Regents BABs 6.27s of 2031 yielded 6.28%, even with where they traded Thursday.

In non-BAB trading activity, a dealer sold to a customer New York's Liberty Development Corp. 5.25s of 2035 at 5.60%, down one basis point from where they were sold Thursday. A dealer sold to a customer Minnesota 4s of 2023 at 3.73%, even with where they traded Thursday. A dealer sold to a customer Dallas Independent School District 5s of 2027 at 4.10%, even with where they were sold Thursday. Bonds from an interdealer trade of Bay Area Toll Authority 5s of 2034 yielded 5.03%, even with where they traded Thursday. A dealer sold to a customer Honolulu 5s of 2034 at 4.48%, one basis point lower than where they were sold Thursday.

In economic data released Friday, existing home sales increased 7.2% in July to a seasonally adjusted 5.24 million-unit rate. The sales rise was larger than the gain to a 5.00 million-unit pace predicted by Thomson Reuters' poll of economists and followed a 3.6% increase to 4.89 million units in June.

Activity in the new-issue market was light Friday.

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