The tax-exempt market continued to strengthen Wednesday afternoon as traders said deals in the primary market have been received very well.
"The market is stronger today by about two basis points," a New York trader said, adding that the New York City general obligation deal pricing for institutions is going well. He noted that retail order periods - including last week's New York City Municipal Water Finance Authority deal and Wednesday's Regents of the University of California deal - are all seeing very good reception. "It really has to be that people are starved for paper. These deals all have retail order periods and to see three deals come within a week-and-a-half and deals all do well is good news."