The municipal market was weaker yesterday. Traders said tax-exempt yields were higher by three to five basis points.
"I won't say it's lack of interest. There is interest, but you've got to have the right paper," a trader in New York said. "The last few days I've had decent distribution. I really can't complain, but I think a lot of dealers have their hands tied, they're told not to bid. And I think those who do have rope to hang themselves, and they're being very careful, because there's fear of all the secondary conversion from auction rates and floaters into fixed rate. It's also a very lean time of year for business. March and April aren't exactly big months for reinvestment."