The tax-exempt market showed more gains Wednesday morning as traders noted there seemed to be little sign of slowing. Supply and demand factors are expected to remain favorable throughout the summer, pushing munis higher.

"We are a little firmer today," a New York trader said. "Treasuries are coming back. We will probably resume buying again shortly."

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.