The tax-exempt market finished stronger for the seventh consecutive trading session as demand outweighed supply and yields fell further, closing in on record low territory set late July.

Traders said the supply and demand imbalance is not expected to change in the near future. “We are stronger and I think we are going to get stronger,” a Chicago trader said. “There is not much supply coming in and all of a sudden if you want bonds, you have to pay the price and push it up a bit.”

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