The tax-exempt market firmed Wednesday, following Treasuries, as buyers continued their holiday shopping for new bonds.

Munis had a “pretty firm tone,” a trader in New Jersey said. “They followed Treasuries to some extent. And we did feel pretty firm improvement, and the bottom line is, we always lag the Treasury market. And we were two to three basis points lower in yield. And that’s impressive. But we are not getting the eight or 10 basis points we had been getting.”

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