The tax-exempt market continued with a firmer tone Tuesday morning as traders said the market saw firm bids in a week with overall light supply.

"It's still well-bid generally," a New York trader said. "Credits spreads are generally tight. People want to be involved in the market." He said the market felt one to two basis points firmer in the morning trading session, though "decent size competitive deals may set the tone and that could change pretty quickly."

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