The municipal market finished slightly weaker yesterday, partially reflecting a softness in Treasuries. Traders said tax-exempt yields were higher by one or two basis points."It's actually a little bit weaker right now," a trader in New York said. "We've had some strength in the market for a while, but we're doing a bit of an about-face. It's still fairly quiet, but I'd say we're definitely cheaper by a basis point or two."
"Treasuries have been weakening the past couple days, and I think it's finally weighing on the muni market a little bit," a trader in Los Angeles said. "We're just a little bit weaker today, not more than a basis point or two. But there's none of that firmness we'd been feeling recently. It's definitely weaker today."