The municipal market was substantially weaker yesterday, as the impact of Wednesday’s stock market rebound, which made Treasuries about-face, trickled into tax-exempts.

“What you’re seeing in the market right now is a reflection of what was started in the latter part of [Wednesday’s] session,” a trader in New York said. “Stocks turned around, which turned Treasuries around, but it was late enough that it didn’t really effect munis until [yesterday] morning. But we’re feeling it now.”

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