Article: Muni prices drop with Treasuries; outlook revised on NYS GO bonds. (New York State general obligation bonds)(The Municipal Market) (Column)

Municipal bond prices fell 1/2 point yesterday in sympathy with Treasuries.

"I think for us it was a continuation of Friday, and I think dealer inventories are heavy," one analyst said of yesterday's drop. Tax-exempts followed Treasuries lower Friday after the Federal Reserve tightened monetary policy.

Dollar bonds were quoted off 1/2 point overall yesterday, while yields on high-grade issues rose roughly three basis points in the intermediate sector and five basis points for the rest of the list. the analyst said. Trading was light.

One trader said he thought high-grade yields at least 5 basis points and even 10 in some cases.

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