Municipal bonds gained through Tuesday afternoon as traders in the tax-exempt market received the first of a wave of new deals expected in the next month.

"We're basically seeing a firm tone in the marketplace today," a New York-based trader said in an interview. "If we do absorb the bond volume this week and prices remain full, you have a good opportunity for the muni market to continue this way."

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.