Asset managers are trying a little of everything after a historic selloff catapulted municipal bond yields some 60 basis points higher a week ago.

As the start of the third quarter and summer reinvestment season neared, some managers were limiting their exposure by sticking with bonds maturing within five years and increasing their credit surveillance and liquidity to protect assets from further weakness. Others were buying, taking advantage of rare 5%-plus yields on the long end -- particularly in new issues.

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