Traders described the tax-exempt market as apathetic in Monday's afternoon trading session as buyers were hesitant to put money to work ahead of Wednesday's Federal Open Market Committee meeting announcement, GDP numbers, and more expected outflows from muni bond funds.

"It does not feel stronger. It feels flat or maybe weaker," a New Jersey trader said. "All of the big funds have a ton of cash and they are keeping it that way. They don't want to put money to work."

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