The municipal market was slightly firmer yesterday. Traders said tax-exempt yields were lower by about three or four basis points.

"For the first time in a while, munis are feeling a little bit better at this point," a trader in New York said. "Even before the housing number came out, munis were doing better by two to three basis points. There appears to be retail demand on the long end right now. On the shorter end, you have people looking for good, clean, high-grade paper."

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