The tax-exempt market continued its losing streak for the fifth consecutive trading session as munis weakened under the pressure of a heavy primary calendar.

“The market is weaker ahead of the calendar,” a New Jersey trader said. “Secondary activity is a little light from our perspective and I think the fall-off in Treasuries is affecting us to an extent. It doesn’t take much for our market to drift off and we don’t have the liquidity. So when Treasuries back off, we feel it and bids tend to dry up.”

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