Activity in the tax-exempt municipal market was light Monday afternoon as traders tried to assess the effect of Detroit's historic bankruptcy.

"We're having a hard time figuring out where we are at the moment," said a trader on the west coast. "We may still be getting some retail reaction from the Detroit bankruptcy, it's hard to tell. I think it'll take at least a few days to see what kind of ripple effect Detroit and outflows from funds has, those are going to have the biggest effect."

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