The municipal market was weaker by about three basis points overall yesterday. Traders said tax-exempt yields were up anywhere from two to five basis points, with the bulk of the losses coming on the long end of the scale."It's fairly quiet coming off the weekend. Things are cheapening up a bit on the long end, but trading is pretty scarce on the short end, so it's hanging tight," a trader in New York said.

"We got progressively weaker as the day went on, and really, it gets progressively weaker the further along the curve you go," a trader in San Francisco said. "It's probably a basis point or so cheaper on the short end, but as much as maybe four or five out long, maybe even six depending on the credit. Overall though, I'd call it about three basis points weaker."

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