The tax-exempt market absorbed one of the largest days of new issuance this week very well as traders said new orders were flowing in during retail order periods. Other traders noted they weren’t getting too excited since the real test will come later this week.

“The secondary is getting their cue from the new-issue calendar,” a New York trader said. “They are pretty steady, but the real test will be when they free up and see if and how those bonds trade in the secondary later this week.”

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