The municipal bond market was driven by Treasuries Wednesday as tax-exempts and taxables headed lower after better-than-expected gross domestic product data and an unchanged Federal Open Market Committee announcement.

Investors warmed to riskier assets following the positive GDP report, pushing safe haven assets, like municipal bonds and Treasuries, lower Wednesday. GDP increased at an annual rate of 1.7% in the second quarter of 2013, according to the advance estimate released by the Commerce Department. The increase was better than the 1% growth expected by economists.

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