So far, timing and the Federal Reserve Board are both chief drivers of activity in the municipal market in the early third quarter, according to Tom Kozlik, managing director and head of public policy and municipal strategy at HilltopSecurities Inc. The Fed, and the fact that only a low to moderate level of demand seems to be balanced by a low to moderate level of supply, are the market technicals impacting the market the most, according to Kozlik. "The supply and demand dynamic is almost always a leading driver of the primary municipal bond issuance," he said Tuesday.

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