The municipal market was largely flat Friday amid fairly light secondary trading activity, as long Treasury yields edged back above long munis after two sessions at over 100% of Treasury yields.
“The market is tired, sleepy, and over-exercised,” a trader in New York said. “Typical Friday doldrums. Next week there are a few good names bringing new issues, so we will see if we can continue to keep it going. There is more money than there are bonds, so it is keeping things at fairly robust prices. So if the Treasury hangs in here, on a percentage basis we are right there. The outlook looks flat to promising.”