The tax-exempt market pared morning losses in the afternoon upon news that the Federal Open Market Committee would not take further action. While munis ended the day mostly flat, traders said the focus of the market was on the long end.
“Munis were mostly flat throughout the day,” a trader in Los Angeles said. “Munis have been on fire for the past few weeks given the lack of supply, so if anything, it’s a function of everyone having so much cash and waiting for rates to improve. But they aren’t improving, so people have no other choice but to get in.”