The municipal market continued to tread water Monday after a 13th straight week of outflows from municipal bond funds kept wary investors waiting for upcoming issuance. Traders on vacation the week before Labor Day also added to the late-summer doldrums.

"There's very little activity," said one trader in New York. "There are still concerns over where we're headed. Outflows just add to it - if you're on the fence, you hold tight and see where it goes. This morning is back to school and back to reality."

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