The municipal market was weaker yesterday. Traders said tax-exempt yields were up by about four or five basis points overall.

"The market is very sloppy, very sketchy. It continues to be under pressure from at least the threat of deleveraging, though it seems to have diminished somewhat as the days have gone by," said Evan Rourke, portfolio manager at MD Sass. "There are some positive headlines now, you're starting to see some effects of individual investor interest. Obviously munis are attractive on a relative basis, and as that news starts to leak out to the general public, more and more assets start being committed to munis, which is good."

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