Weakness persisted in the municipal market yesterday, as tax-exempt yields pushed higher by as much as five basis points, and issuers in Texas and Colorado came to market with Build America Bonds.“We had a good run, prior to this week, of firmness in the market for a couple weeks, but it has definitely turned around over the past week or so,” a trader in New York said. “We’re seeing a good amount of cheapness in the market, and that’s continuing today.”

“We’ve been weaker all day, but I think the losses really kind of expanded as the day progressed on,” a trader in Los Angeles said. “I’d probably call it down three or four basis points, but it’s maybe even down five or so on the long end.”

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