The tax-exempt market was weaker, following Treasuries, as many deals in the primary market started to price. Still, traders said the tone of the market was constructive and not a lot of balances were left on deals.

“Treasury markets are seeing a correction here and so the Municipal Market Data scale is seeing cuts between two and four basis points,” a Los Angeles trader said. “I would say the market tone is pretty good and constructive. There are deals in the market that are being done and we are seeing flows.”

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