The tax-exempt market continued to see light trading Monday afternoon as traders waited for primary supply to price later in the week.

"Mondays are setting the table for the rest of the week," a Chicago trader said. "The calendar is light and of the calendar, a lot is taxable. So there are some residual balances from new loans last week that will be picked at but overall it feels like the dealer community is medium to light in inventory. I am not seeing a lot of bonds offered from trading accounts."

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