The municipal market was slightly firmer Wednesday against a backdrop of strengthening Treasuries and a $3.7 billion taxable pension bond offering from cash-strapped Illinois.

"Stronger Treasuries have been helping hold yields down for a few days now and today was no exception," a trader in Los Angeles said. "A lack of supply to test the long-end of the tax-exempt market is also contributing to the slow-burn rally we've been experiencing."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.