The municipal market was mostly unchanged with a slightly weaker tone yesterday amid fairly light secondary trading activity, as the Dormitory Authority of the State of New York competitively sold $800 million of taxable Build America Bonds.

“The market is stable. There have been some trades that are slightly weaker with the Treasury sell-off, but I would say only slightly, maybe a couple of basis points or so,” a trader in Los Angeles said. “Really, I think people are watching a few different deals in the market today. And what the institutional customers are doing is looking at the deals and using the cash they have on hand for buying the new issues.”

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