The plunge in long-term municipal bond volume for 2013 continued as issuers in August floated 37.7% less than they did over the same period in 2012, the latest sign that rising interest rates are curbing issuer demand.

Municipalities issued $20.9 billion last month in 746 deals, against $33.5 billion in 1,066 issues in August 2012, Thomson Reuters numbers show. For the year to date, new issuance has fallen to  $225.9 billion in 7,963 deals from $257.6 billion in 9,005 deals, a decline of 12%.

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