The tax-exempt market posted gains Wednesday afternoon on positive reception from new deals in the primary and stronger Puerto Rico bonds over the past few weeks that gave traders some relief.

“Puerto Rico is not a 2013 issue,” a San Francisco trader said. “So you’ve taken out that event risk on the short-term. Puerto Rico might hit the wall somewhere in the early spring when economic numbers come in, they start missing targets, and the threat of a downgrade becomes real.”

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