WHEN THE DAM BREAKS.

The article observes that a number of U.S. municipal bond specialists expressed the concern that the bond market might be entering its toughest period since 1933. However, it adds that the interest rates on tax-exempt loans have dropped from 3.84% to 3.50% in March 1960, which indicates that the municipal bond market might be able to handle an increased demand for financing from local and state governments looking to sell bonds during the spring construction season.