Weekly yield indexes fell precipitously this week thanks to a flight to quality among Treasuries coupled with seasonal demand for tax-exempt paper.

“We’ve seen a rally in high-grade tax-exempts over the past week as some of that reinvestment money is coming into play,” said Philip Villaluz, head of muni research and strategy at Sterne Agee & Leach, referring to July coupon payments that typically roll over into new product.

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