Amid a rallying Treasury market and weaker-than-expected economic data, municipal yields plunged to record-low levels Tuesday, picking up a streak of new lows this month interrupted only by Monday’s flatness.

Traders said tax-exempt yields were lower by five to seven basis points overall, following surging Treasuries, and while $7.8 billion of Texas tax and revenue anticipation notes were sold in the competitive new-issue market.

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