The municipal market was weaker by about three to five basis points overall yesterday amid light to moderate secondary trading.

“There is some rate fatigue,” a trader in Los Angeles said. “The market has a much weaker tone today than in the past few days. It just basically looks like a mild correction. There was a cut Wednesday, there was a cut about five basis points or so today. We are seeing bonds trading from anywhere between five to 10 basis points cheaper than Wednesday. So it’s simply an adjustment and a correction in the muni market.”

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