The municipal bond market continued its trudge with a steady to slightly weaker tone for the third session this week as the debt ceiling and government shutdown kept buyers on the sidelines.

Bond markets also digested news that President Obama will nominate Janet Yellen to replace Ben Bernanke as the next chairman of the Federal Reserve Board. "Most of the reaction happened for Summers," a New York trader said, referring to Lawrence Summers, once considered the front runner, withdrawing his name from consideration last month. "Everyone assumed at that point it would be Yellen."

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