Municipals finished yesterday's lightly traded session unchanged after an erosion in Treasury prices siphoned off slight morning gains.
Dollar bond prices had been up 1/8 point heading into noon yesterday, but ended unchanged to a touch higher. High-grades were unchanged. In the debt futures market, the September municipal contract was down 1/8 point at 90 25/32. Yesterday's September MOB spread was negative 390, compared with negative 392 on Friday. In the government market, the 30-year bond ended down more than 1/8 point to yield 7.49%. Yesterday's slightly lower levels came after big swings in the government's benchmark issue last week.