The municipal market was once again firmer yesterday, with much of the gains situated on the short end of the scale.

"We're better again today," a trader in New York said. "Pretty much continuing the theme from the last couple of weeks. We're seeing pretty sizeable gains on the short end right now, maybe six basis points or so, but it kind of decreases a bit as you go further out the curve. Long-term paper isn't really much better at all, maybe a basis point or two. But it's definitely firmer, and there's a good amount of trading going on."

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