The tax-exempt market was trading steady to firmer Monday afternoon as traders noted that stronger trades were getting done, but cautioned that the market was not soaring.

"Mondays seem to start out this way and in the last few weeks people are taking summer vacations," a Chicago trader said. "But on Aug. 15 we are moving towards the second leg of the Texas redemption money and it should be evenly dispersed. Right now the market has a finite set of opportunities. It is order driven or a situation like this that occurs with the Texas redemption money coming due."

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