The tax-exempt market weakened for the third trading session this week, though traders noted the selloff wasn't as hectic as it had been in prior trading sessions.

"It doesn't feel quite as crazy as it has been," an Atlanta trader said. "I know the bids are weak but it doesn't seem to be dramatic so far. It's probably going to stay a touch weaker until we get a good boost in govies and figure out what's going on in Washington, but people are actually calling in and bidding on my bonds. I haven't seen that in a while."

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