Yields in the municipal market rose to 21-month highs Tuesday as the expectation that the Build America Bonds program will expire at year's end spurred issuers to bring more of the taxable product to market.

Traders said tax-exempt yields were weaker by about 15 basis points in maturities 10 years and longer as supply outpaced demand, in tandem with a Treasury rout exacerbated by a dovish statement from the Federal Open Market Committee.

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