The municipal bond market started to regain its equilibrium early yesterday after two punishing sessions, only to stumble later in the day on jitters over today's release of October employment data.

"I think it's just pre-number nervousness," one trader said yesterday. Selling was light Thursday morning, when it "looked like the market was going to try to catch a bid," he said. On late Wednesday afternoon, - the market had started to see "decent" trading, after some benchmark double-A paper hit 7%, he noted. The 7% yields attracted a few crossover buyers and even some mutual funds, he said.

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