The Asset Management Division of Wells Fargo Bank recently issued a strong buy recommendation on tax-exempt municipal bonds, saying they remain undervalued relative to long-term U.S. Treasury bonds.

The bank's fall 1991 investment strategy report -- released Oct. 22 -- noted that demand remains strong and "this year's increases in federal and state income taxes have made tax-exempts even more advantageous."

The asset management division recommended overweighing municipal issues, particularly in the five- to 15-year maturity range.

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