The tax-exempt market ended weaker Thursday, following Treasuries, as $5.5 billion of California notes and $121.7 million of Chicago Parks District bonds priced in the primary market.

Traders said municipal yields followed Treasury yields higher as the 10-year Treasury yield broke through a key marker on fears that the Federal Reserve would scale back its $85 billion a month bond purchasing program after better-than-expected economic news released Thursday morning.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.