The tax-exempt market got off to a very strong start Wednesday morning as munis rallied, following Treasuries, as stock plummeted.

As market participants digested election results, they turned their attention to the looming fiscal cliff and problems in Europe. In turn, the risk-off trade forced all safe haven assets higher.

"In munis, people are buying everything," a New York trader said.

In the competitive market Wednesday, New York's Oyster Bay is expected to auction $113 million of bonds.

On Tuesday, the Municipal Market Data scale was steady to firmer. The 10-year yield fell one basis point to 1.71%. The 30-year yield was steady at 2.81% while the two-year yield was flat at 0.30% for the 29th consecutive trading session.

Treasuries were much stronger as stocks plummeted. The benchmark 10-year yield plunged nine basis points to 1.63% while the 30-year yield dropped eight basis points to 2.82%. The two-year yield fell two basis points to 0.26%.

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