Demand for bonds evaporated yesterday and market players braced for today's employment report, hoping it would stem a two-week price hemorrhage, rather than make matters worse.

After enduring punch after punch, the bid for municipal bonds finally hit the canvas, and panic set in, traders said yesterday. If the jobs report is bullish for the market, oversold prices are expected to snap back. But if the report shows a strengthening job sector, dealers said losses would become even worse.

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