Municipal bond yields, true to their habit of following Treasury yields with a noticeable lag, have started Tuesday lower, bestowing upon the market a stronger tenor.

The 10-year sector of the municipal bond yield curve is pulling in buyers, a trader in New York said. Thanks to a rally in Treasuries, coupled with muni underperformance Monday, 10-year muni ratios to Treasuries climbed to 100% for the first time since the end of December.

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