The tax-exempt market posted its strongest rally in more than a month Monday as yields fell almost 10 basis points on a small new-issue calendar and news that Larry Summers — who had been the front-runner to replace Ben Bernanke as the chairman of the Federal Reserve — withdrew his name from consideration.

Municipal bond prices followed Treasury prices higher on poor economic data over the past several weeks and the possibility the Fed will taper its bond buying program less than the market expects after the Federal Open Market Committee meeting, which takes place Tuesday and Wednesday.

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