Positive news that Greece will not hold a voter referendum on the austerity plan added confidence to the market, pushing Treasuries down, and munis followed.
“It’s stalled a little here and the attention has been elsewhere,” a trader in Chicago said. “We are looking at a 30-day visible supply that is as high as its been since last December. Munis are attractive on a relative basis but there are still absolute yields that, from an investor perspective, are not attractive. Investors are not motivated to put money to work at these low levels.”