The municipal market was weaker Friday, following Treasuries. Traders said tax-exempt yields were higher by three or four basis points.

"We're definitely selling off a bit," a trader in New York said. "The only thing that's working against it is it's Friday and there aren't a lot of people around or doing anything. The short end is not off quite as much, because there's still a lot of demand. It's very oversold. But overall, we're off a good four basis points."

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