The municipal market has been gorging on a lot of new issuance over the past few weeks, but apparently not more than it can digest.
Yields for the week have mostly risen to absorb the new volume. By midweek, they rose eight basis points on the intermediate and long end of the curve. But the sell-offs have been rather subdued, a sign that the market overall has withstood the vast increase in supply. This has left it in good stead heading into a holiday week, industry pros said.