The municipal market was unchanged to slightly weaker yesterday. Traders said tax-exempt yields were flat to higher by one or two basis points.“It’s somewhat quiet, not too much trading going on, but there’s a weaker tone in the market now,” a trader in Los Angeles said. “It was fairly flat in the morning, but some weakness has crept in, more so I guess in the intermediate maturities. But it’s just following Treasuries a bit, I think. We’re about a basis point or two cheaper in spots, but maybe a little flat in others. On the whole though, just a bit weaker.”

“There’s been a firmer tone pretty much the whole week, but it’s turned around a bit today,” a trader in New York said. “I wouldn’t say we’re exceptionally weaker, but there’s a weaker tone. We’re still probably close to unchanged on the whole, but it feels the weakest it’s felt this week.”

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