Nearly all of The Bond Buyer's weekly yield indexes declined this week, fueled by a flood of investor demand that helped turn around the municipal market's period of prolonged weakness.

"When you look at the big sell-off that occurred prior to this week, you can see that bonds got very cheap, to the point where, on Friday, according to [Municipal Market Data], a 10-year triple-A bond was spread 117 basis points over the 10-year Treasury note," said Howard Mackey, president of the broker-dealer business unit of Rice Financial Products. "So that made it pretty much a no-brainer for a lot of crossover buyers, and insurance companies, and other major institutions that had cash to come in and buy munis."

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