The Friday afternoon malaise in the tax-exempt market took hold as traders looked to next week's offerings and June 1 reinvestment money.

"I like taxable munis right now with the nice back up in Treasury yields," a trader in Ohio said. "I'm still not a fan of tax-exempts but as long as sellers aren't too proud of their offerings I could see the secondary market doing okay next week thanks to June 1 reinvestment money and seemingly manageable supply expected, despite the underwhelming muni-to-Treasury ratios."

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