Just as the dust was setting from a municipal yearend borrowing binge, the Federal Reserve Friday sent the tax-exempt market into a frenzy by lopping a percentage point from the discount rate.

Municipal bonds gained roughly 1/2 point on the day, and more striking gains were reported in the municipal note market.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.