Tax-exempts mirrored the government market's roller-coaster ride yesterday, which started lower and steadily improved throughout the afternoon in reaction to a Federal Reserve move and over $2.5 billion generally well-received bonds. Yesterday morning, municipal investors were greeted by economic news that brought the bears out of hibernation and drove prices almost 3/8 lower. By the end of the session, prices rebounded to close about an 1/8 lower.

Leading economic indicators for April were up to 0.4%. Economists polled by The Bond Buyer had predictated a rise of 0.2%. The March figure was revised to show a 0.4% rise.

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