The municipal market is expected to catch its collective breath this week as new volume tapers off by about $2.5 billion from the $7.25 billion that smothered the market last week, sparking a sell-off that sent benchmark yields to 15-month highs and caused the cancellation of a handful of deals, according to Ipreo LLC and The Bond Buyer.

New volume will recede to an estimated $4.39 billion, which is barely half of the $8.08 billion average for the 46 weeks so far this year, according to Thomson Reuters. Recent weekly volume has ranged from $12.91 billion during the week of Oct. 4 to $7.25 billion last week, according to the data. But a string of several consecutive heavy weeks had undermined demand.

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