Like many people, most muni bonds also took day off for Mr. Columbus.

Prices were flat in listless holiday trading yesterday as the market took a break after Friday's rally.

The government cash market was closed and the futures market ceased action at 1 p.m., eastern time, in observance of Columbus Day. Traders reported practically no activity during the abbreviated session. They did note that the market's tone was constructive after Friday's jobs report indicated more economic weakness and sent bond yields lower.

Cash muni prices were quoted mostly unchanged yesterday, although some dollar bonds were 1/8 point firmer, depending upon the name, traders said. Activity was light, but market sources said $5 million Georgia 4.40s of 2001 traded right around 4.15% and $2.2 Million Port Authority of New York and New Jersey 5s of 2013 traded around 5.14%.

In secondary dollar bond trading, New York City Group C 5 3/8s of 2022 were quoted at 5.80% net, 5.75% less 1/4; Port 5 1/8s of 2021 were at 99-1/4 to yield 5.19%; and Florida MPA AMBAC 4 1/2s of 2027 were 5.19% bid, 5.17% offered.

In the debt futures market, the December municipal contract settled up 2/32 at 105.07.

In the short-term note sector, yields unchanged to three basis points lower in spots, traders said.

In late trading, California Rans were quoted at 2.74% bid, 2.72% offered; New York State Trans were at 2.62% bid, 2.55% offered; and Texas Trans 2.75% bid, 2.73% offered.

Looking ahead, secondary supply remains the market's biggest challenge, traders said. Tax exempts will likely lag any Treasury gains until work off supply accumulated during bearish trading sessions prior to Friday's rally. The Blue List of dealer inventory was unavailable yesterday, but it totaled $1.87 billion Friday. Market players said they were hoping for bullish inflation reports at the end of the week to work off the supply.

"A lot of customers were forced into the market on Friday and if we get good inflation data next Friday governments will probably test the old highs," a trader said yesterday. "We'll lag any move higher, but good inflation numbers will give us a chance to clear the decks of bonds."

Until Thursday's producer price report and Friday's consumer price report, new deals will be the focus of most of the week's activity. Dominating action in today's competitive sector will be $125 million Los Angeles Department of Water and Power revenue bonds. The negotiated sector is paced by $600 million Salt River Project Agriculture Improvement Power District., Ariz. electric system refunding revenue bonds, to be priced by Bear, Steams & Co.; $270 million Atlanta, Ga., water and sewerage revenue bonds, to be priced by Merrill Lynch & Co.; and $215 million Ohio Building Authority workers compensation facility revenue refunding bonds, to be offered through Smith Barney Shearson.

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