The tax-exempt market was slightly weaker Monday as munis followed Treasuries lower. The lack of new supply kept activity muted as traders waited for new issuance to provide direction.

“We were off about 3 to 4 basis points earlier in the day, and we came back to the stage where we are only off 2,” said a trader in New York. “We started to explore where new issues are going to be coming from but I don’t think anything will change until we see first how that develops.”

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