The municipal market was weaker by one or two basis points Friday, mostly holding off a sell-off in the Treasury market prompted by concerns over whether or not the federal government would intervene to shore up confidence in troubled Fannie Mae and Freddie Mac.

“We’re off a smidge, but not as much as Treasuries — they’ve got the hammerlock on them right now,” a trader in Chicago said. “We got decoupled from Treasuries a bit back, and got cheaper and cheaper, so now if they’re off, we’re not going to be off as much.”

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