Tax-exempt municipals remained quiet on Tuesday even as some investors looked to sell unwanted bonds before getting a fresh start in the New Year. Offers to sell will be prevalent as the year comes to a close and investors try to get out of certain positions, traders pointed out.

"There are a lot of customer lists with some bid-wanteds out," a trader on the west coast said in an interview. "There might be a little year-end liquidation going on with people getting ready to close their books, and that may produce some pressure on the market."

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