Municipals were steady Friday ahead of a new-issue calendar next week at $6.6 billion, while U.S. Treasuries were weaker five years and in and equities rallied.

"While the U.S. economic data remain relatively strong, this hawkish tone continues to put pressure on Treasury rates, which have moved higher by 10-15 basis points this week, more so in the front end," according to Barclays PLC.

Tax-exempts have "largely kept up with the UST move, and MMD-UST ratios have moved sideways," said Barclays strategists Mikhail Foux, Clare Pickering and Mayur Patel.