The tax-exempt market ended as much as five basis points stronger on Wednesday as Puerto Rico rallied and demand for primary issuance pushed the secondary market firmer. The Federal Reserve said it will continue to pump money into the economy by extending its $85 billion a month bond purchasing program.

Municipal bond traders said positive reception for the largest deals of the week pushed prices higher across the board. "The market feels firm," a New York trader said. "There is good secondary activity. The new issues pricing Tuesday seem to have helped. People are looking at the secondary now that that's out of the way."

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