The municipal market was weaker yesterday following a three-day holiday weekend. Traders said tax-exempt yields in the secondary market climbed about three or four basis points overall.

“We’re cheapening up a bit again,” a trader in New York said. “We’re probably down three, maybe four basis points right now. Basically just picking up where we left off at the end of last week. The market is still correcting itself from all that firmness, and we probably have a bit further to go. There isn’t much going on in the secondary, but I think a lot of people want to try and wait this out a bit. I don’t think people are really looking to do too much out there unless they have inventory they really need to move.”

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