Municipal bonds remain attractive even after their divergence from Treasuries this past week, industry watchers say, suggesting the recent signs of strength in the market may carry into the new year.

Muni ratios to Treasuries have tumbled into richer territory as tax-exempt yields have outperformed those of Treasuries. But there remain many spots along the yield curve, and many different credit levels, at which investors may choose to put their money, analysts and fund managers said.

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