With more buying conviction than it has seen in months, the municipal bond market posted strong gains as yields on triple-A benchmark scales fell as much as eight basis points.

After lackluster demand stemming from 15 consecutive weeks of outflows from municipal bond mutual funds totalling $24.6 billion, and uncertainty surrounding the future of the Federal Reserve’s $85 billion-a-month bond purchasing program, traders said yields were finally high enough to entice buyers back into the market.

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