Bids continued to surface in the tax-exempt market Tuesday afternoon as sellers looked to purge bonds, though traders cautioned the bids didn't necessarily turn into actual trades.

"It's pretty brutal for the month of June," a New York trader said. "I just walked in this morning and Treasuries were down nicely and that continued to set tone for munis. People are just waiting to for guidance and for things to settle in before they jump back in."

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