After firming in the early afternoon, the tax-exempt market ended Monday weaker, ahead of what is expected to be the year’s largest week of new issuance.

“I think mixed stories are the way you have to look at this,” a trader in Chicago said. “Over the weekend, there were positive stories so if you look at it from a default risk perspective, I think there is a certain comfort level with our product. But what stares at us in the face is the calendar that keeps building.”

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