Municipal yields rose 10 to 15 basis points last week as the market shouldered $6.7 billion of new deals, but issuance will ebb with approaching holidays, giving the Street a chance to work off the supply glut.

New issuance, dominated by $1.2 billion New York City bonds and a $1.6 billion New Jersey Turnpike offering, flooded the primary sector last week, pushing prices lower. By Thursday, the index of 20 general obligation bonds had risen six basis points, to 6.75% from 6.69% on Nov. 14. But by some accounts, the market actually had to give up as much as 15 basis points over the week, mainly in medium-range securities.

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