The municipal market began to pick up the pace from a slow start to the week Tuesday afternoon as pockets of demand arose in the short and long end of the yield curve.

"It's fairly quiet but there are a few bits and pieces that are a little bit busier than yesterday," one trader in New York said in an interview. "The short end is overbought and it's terrible to fight over, but that's where people are. Then there's this cutoff around 2032 or 2035, which nobody wants to buy past, so there's a small market developing on that long end that may come with some buying opportunities in a bit."

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