The selloff in the tax-exempt market slowed Thursday as buyers decided the increase in yields over the last six weeks was enough to create an entry point back into the market.

"The market has been a disaster the last few days," an Ohio trader said. "Firmness in Treasuries today seems to have helped give munis a little bit of support. I think we finally saw the necessary yield and spread adjustments to get to where we found at least a few buyers."

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