So much for a sleepy Monday. Munis spent Monday rallying as yields fell across the curve and tried to keep up with Treasuries, which continued their rally from Friday.

“We did not have the same kind of rally that Treasuries did today,” a Los Angeles-based trader said. “There were some solid bumps in the curve but the muni market is kind of lagging. Munis didn’t perform on the downside when Treasuries sold off last week, so now we are underperforming.”

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