The Bond Buyer's weekly yield indexes declined this week as a firmer tone persisted throughout the week, and yields in the municipal market dropped in nearly all the week's sessions.

"There was a lot of flattening here," said Evan Rourke, portfolio manager at MD Sass. "You had a big rally due largely to buying on the long end. And some of that initially we heard might have been from dealer buying tied into derivatives, and that they had written certain different kinds of derivative transactions based on attractiveness of the muni bond market relative to other markets."

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