Municipal bond prices rose a quarter point overall Monday, as Standard & Poor's Corp.'s Blue List, which measures dealer inventories, dropped to its lowest level since September 1993.
"It's kind of a mixed bag," a municipal trader said yesterday. "Certain things that traded Friday were off a couple of basis points when they were out for the bid [yesterday], and early in the morning there were some trades out of the chute that were actually higher than Friday." In secondary activity, dollar bond prices ended a quarter-point higher, while yields on high-grade issues improved by two basis points, a municipal analyst said. Dollar bonds had been up as much as 3/8 point early in the afternoon. The analyst attributed yesterday's gains to the drop in supply, a shift in psychology, and the return of buyers.