The municipal market was weaker yesterday, as the Federal Open Market Committee held the federal funds rate unchanged at 2%, while participants continued to deal with the fallout from Lehman Brothers' Chapter 11 bankruptcy filing and news that Bank of America will purchase Merrill Lynch & Co.

Traders said tax-exempt yields were higher by about five basis points overall, though some bonds on the long end of the market aare weaker by 10 or more basis points.

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