The tax-exempt market was weaker Tuesday as munis followed Treasuries lower on positive news from Greece. While munis were weaker, many traders said deals in the primary were being priced attractively and saw strong interest, highlighting demand from investors in the supply-starved market.

“Deals are going OK,” a Los Angeles trader said. “We are taking indication periods for our deals and the long bonds are off and Municipal Market Data is cutting prices, but we are seeing very good interest.”

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