The municipal market was slightly firmer yesterday. Traders said tax-exempt yields were lower by two or three basis points overall.“It feels a little bit firmer out there,” a trader in New York said. “We’re probably better a good two, three basis points overall. We’re definitely three better out long — it’s a bit firmer out long than it is elsewhere along the curve. Business is getting done, but it’s not terribly active.”

“The long end is better a few basis points, maybe three on the really long end,” a trader in Los Angeles said. “It’s still quiet, but it’s picking up a bit. There’s still not a ton of supply out there, and we’re going to need to get some more supply out in the marketplace before activity really starts picking up in earnest. But as far as it goes, we’re doing somewhat better, definitely a little bit firmer, with most of those gains out long.”

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