The municipal market endured another session of pronounced losses Wednesday as continued uncertainty over the future of Build America Bonds helped boost yields 10 to 12 basis points, driving the 20-year scale to a 17-month high.

"There's still a very palpable fear of the unknown out there with regard to the future of the BAB program," a trader in Los Angeles said. "There's still some optimism something could get done, but it seems like the sentiment is shifting back towards an expectation that the program will be done in about three weeks. Today, we're picking up from [Tuesday] and just getting routed out there."

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