Municipals were mixed in the face of Treasury losses yesterday, while new-issue action was dominated by the New York State Urban Development Corp.
Government prices declined as much as 1/4 of a point before settling down only marginally near the end of New York trading as worries about a Fed tightening pestered bonds for the second day. Municipals were spared the volatility, although the confidence level took a hit, traders said. Sellers anted up some sizable bid-wanted lists, but they had little effect on the market overall. After what was termed a mostly lack-luster session, prices were quoted mixed on the day.