Munis started off strong and ended even stronger Thursday as limited supply appeared to increase demand and push tax-exempts higher. Buyers weren’t able to buy bonds without paying high prices.

“There were buyers everywhere,” said a New York trader. “Dealers today were bumping prices. They are running out of inventory and can’t replace their bonds. So they are holding mostly for internal customers.”

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.