The tax-exempt market was trading mostly steady Monday, even as Treasuries moved higher. With little primary issuance to provide direction, munis seemed to be on holiday.

"It's slow, a New York trader said. "And unchanged."

Munis were steady Monday afternoon, according to the Municipal Market Data scale. On Friday, the 10-year tax-exempt yield finished at 1.71%, 11 basis points above its record low of 1.60% set July 26. The 30-year yield closed at 2.87%, eight basis points off its record low yield of 2.79% set July 25. The two-year was steady at 0.29% for the seventh consecutive session.

Treasuries continued to strengthen Monday morning. The benchmark 10-year yield dropped three basis points to 1.54% while the 30-year yield fell two basis points to 2.63%. The two-year was steady at 0.25%.

In the primary market, Bank of America Merrill Lynch priced its first of a two-day retail order period of $850 million of New York City Transitional Finance Authority future tax-secured bonds and subordinate bonds, rated Aa1 by Moody's Investors Service and AAA by Standard & Poor's and Fitch Ratings.

Yields on the first series, $100 million of subordinate bonds, ranged from 0.48% with 2% and 4% coupons in a split 2015 maturity to 2.46% with a 2.5% coupon in 2026. Credits maturing in 2014 were offered via sealed bid. The bonds are callable at par in 2022.

Yields on the second series, $750 million of future tax-secured subordinate bonds, ranged from 0.53% with a 5% coupon in 2015 to 3% priced at par in 2032. Bonds maturing in 2013 and 2014 were offered via sealed bid. Credits maturing between 2024 and 2027 and between 2029 and 2031 were not offered for retail. The bonds are callable at par in 2022.