NEW YORK – After three days of losses, the tax-exempt market looks to be strengthening again as munis rallied Wednesday morning after making small gains Tuesday. But trading activity seems to be light again.

“It’s very slow,” a trader in New York said. “But a bit better bid.”

Munis were firmer on Wednesday morning, according to the Municipal Market Data scale. Yields inside seven years were steady while yields outside the eight-year spot fell between one and four basis points.

On Tuesday, the two-year yield closed steady at 0.35% for its eighth consecutive trading session while the 10-year muni yield finished flat at 1.87%. The 30-year yield fell one basis point to 3.36%.

Treasuries were weaker Wednesday morning. The two-year yield and the 30-year yield rose one basis point each to 0.26% and 3.16%. The benchmark 10-year yield was steady at 2.06%.

In the primary market, Goldman, Sachs & Co. is expected to price $122.2 million of Dormitory Authority of the State of New York bonds for the Memorial Sloan Kettering Cancer Center. The credit is rated Aa2 by Moody’s Investors Service, AA-minus by Standard & Poor’s, and AA by Fitch Ratings.

George K. Baum & Co. is expected to price $115.3 million of Denver Public School District general obligation refunding bonds, rated Aa2 by Moody’s and AA-minus by Standard & Poor’s.

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