The tax-exempt market held its ground amid a weaker Treasury market as traders said munis were no more than a basis point or two weaker.

Following Federal Reserve Chairman Ben Bernanke's testimony Wednesday morning, Treasuries reversed gains and softened in afternoon trading. The benchmark 10-year yield jumped 10 basis points to 2.04% and the 30-year yield increased seven basis points to 3.21%. The two-year was steady at 0.25%.

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