Activity in the tax-exempt market began to slow Friday morning as municipal bonds continued to take direction from Treasuries.

Traders continued to say the market was in limbo - waiting for clarity regarding the election and the fiscal cliff. "It's slow on this Friday," a New York trader said. "It feels as if we're in this continued wait-and-see what is going to happen with the election. So we're getting some business done and orders are getting executed but still business has been slow for most of month."

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