The municipal market was weaker again Friday, despite more flight-to-quality gains in Treasuries, and as negotiations continued on a government bailout plan that could help stabilize the market.

"It's been such a crazy week. The muni market is down, but people just don't know what to do," a trader in Los Angeles said. "I don't think it's down that much, but the attitude is it's off, so it's off."

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