The municipal market was mostly unchanged yesterday amid continued fairly light secondary trading activity, as traders struggled to find liquidity.
“The muni market is terrible right now,” a veteran trader in New York said. “There is very little turnover. The actual ability to sell bonds is very limited. You can sell bigger pieces, but away from that, it is difficult. The market is just not doing anything. It is extremely tough to trade right now. I don’t think it will improve for a couple of weeks. It will probably take a quick drop in yields to spur interest, maybe something like 25 to 30 basis points.”