The panicked aftermath of last week’s earthquake in Japan buttressed the municipal bond market on Tuesday as investors sought the protective sanctuary of high-quality dollar-denominated bonds.

The so-called risk-off trade is back after a brief hiatus. The S&P 500 Index slipped 1.1% on Tuesday. The 10-year Treasury yield dipped five basis points to 3.31%, the lowest yield since Jan. 13.

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