The municipal market was weaker yesterday, ending a trend of falling tax-exempt yields that had endured for several weeks. Traders said muni yields were higher by five to seven basis points.
"Well, I guess the rally couldn't last forever," a trader in New York said. "We had a really prolonged period of firmness pretty much every day, but that's decidedly done with today. At least for today. We're weaker by a good five basis points or so right now. Treasuries are down, and we're following right behind them."