Yields in the municipal market were flat to slightly elevated yesterday, following a largely unchanged morning. Traders said the weakness in the tax-exempt market was found mostly within the first 10 years of the curve.

"It really depends on what part of the curve you're talking about," a trader in Los Angeles said. "Out long, you might not really see any movement at all. Short-end paper might be weaker by a basis point or so. And there are exceptions to that here and there, but overall, I think that's pretty much the range."

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