Fed up with low yields and too much inventory, the tax-exempt market went on a selling spree Tuesday morning as bonds were cheapened across the curve.

"The market is looking at a five basis point cut right now," said Dan Toboja, vice president at Ziegler Capital Markets. "This market just got weaker. I think everyone woke up this morning and said I'm too heavy. Time to sell. There are some decent size blocks coming for sale."

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