WASHINGTON — Municipal bond and city interests are spending the final hours before the fiscal cliff deadline watching and waiting, remaining hopeful that lawmakers will agree on a slimmed-down last-minute deal not including any threats to the muni interest tax exemption.

"We're not making calls aggressively today," said Mike Nicholas, chief executive officer at Bond Dealers of America. "We've been working the issue really hard, but I'm not sure how much you can do today."

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