The tax-exempt market ended the week on a steady note after an impressive rally that pulled yields down. Even after hitting record lows, traders said the fundamentals still look positive going into next week.

"Negotiated paper was eaten alive this week," a Chicago trader said. "It's getting to the point where there is such a fight for the negotiated. It's nine times oversubscribed so you're never getting the right allocation. You put in $10 million and you get $2 million. So it's a scramble to put money to work."

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