Bulls suddenly turned bears late yesterday and a spate of selling pushed prices down 1/4 point overall, leaving the market in a precarious position.

The municipal market opened with a firm tone as strong investor demand for a short supply of bonds continued to encourage the bulls. The positive psychology prevailed during the morning session as dealers who missed price jumps earlier in the week chased after bonds. But later in the afternoon, Treasury traders, disappointed that the Federal Reserve failed to intervene, sold bonds.

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