Supply issues weighing on the municipal market moved to the backburner yesterday, as tax-exempt yields followed plummeting Treasuries after the Federal Open Market Committee announced plans to purchase more than a combined $1 trillion of mortgage-backed securities and longer-term Treasuries.

Though the Fed opted to hold interest rates unchanged at its 0% to 0.25% range at yesterday's monetary policy meeting, as was widely anticipated, muni and Treasury yields fell sharply when the statement was released.

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