Municipal bond prices were driven down nearly a point yesterday on strong economic reports, a weak Treasury market, and heavy bid-wanted volume from dealers. "I think everybody started to run toward the revolving door at the same time," said a municipal bond analyst. In light to moderate secondary activity yesterday, yields on high-grade issues rose seven basis points overall, and more in spots. Dollar bonds ended down nearly a point overall.
In debt futures yesterday, the December municipal contract closed down 1 14/32 to settle at 83 2/32. Yesterday's December MOB spread was negative 429, compared with negative 417 on Monday.