The tax-exempt market traded on a slightly firmer note Wednesday morning after two trading sessions of rising yields triggered by oversupply in the market.

"Munis are sluggish," a New York trader said. "This muni rally is making people proud of their bonds again but it's probably short lived. There is a lot of supply in the street."

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.