A stronger municipal market weathered more comments by the Fed through solid technicals, decent reception to new issuance and buyer interest at the short end.

The last time Federal Reserve chairman Ben Bernanke spoke, the muni market careened into a deep sell-off. But on Wednesday, Bernanke’s comments to Congress about the status of the Fed’s current accommodative monetary policy prompted early buying and firming tax-exempt yields followed by an afternoon fade. Muni investors in the heart of coupon season with money to put to work have been selling at the long end of the market and buying at the short end, a trader in New York said.

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