NEW YORK - The tax-exempt market was wrapping up the week with investors both buying and selling in morning trading.
"There are some buyers out there and some sellers," a New York trader said. "Nothing is really one way. It's mostly steady."
The Municipal Market Data scale was not updated by press time. On
Treasuries were much weaker, paring gains made on Thursday. The benchmark 10-year yield and the 30-year yield each rose four basis points to 1.66% and 2.72%. The two-year yield rose one basis point to 0.32%.
So far this week, muni-to-Treasury ratios have fallen as munis outperformed Treasuries and became relatively more expensive.
The two-year ratio dropped to 103.2% on Thursday from 106.7% on Monday. The 10-year ratio fell to 114.8% on Thursday from 117.7%. The 30-year ratio dropped slightly to 117.5% from 118% at the beginning of the week.
Munis have continued to outperform Treasuries for June, as ratios have consistently fallen since June 1. The two-year ratio fell from 123.1% at the beginning of June, while the 10-year ratio fell from 119.9%. The 30-year ratio dropped from 120.6% at the start of June.