The municipal bond market was stronger again Tuesday as poor economic data and still-lingering economic woes forced a risk-off trade. Fixed-income markets rallied even as yields have hovered at or near record lows for several consecutive sessions.

"Weak Richmond Fed data is causing munis to rally once again," a trader in Atlanta said. "There is not much value left in the long end, at least for me. I've been a net seller of munis the last 3 months and rotated into preferred stocks for more yield."

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