The dearth of tax-exempt issuance and exodus of investors from volatile equity markets have translated into lower yields across the curve in the traditional municipal market, prompting some analysts to question whether long-bond buyers will continue to assume the duration risk for such minimal gains.

The yield spread between triple-A rated five-year bonds and one-year notes was 84 basis points Friday, according to Municipal Market Data. One year ago, the same spread was 138 basis points.

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