The municipal market was slightly firmer yesterday, following Treasuries. Traders said tax-exempt yields were lower by about two basis points.

"It's extremely quiet, but we're following Treasuries a bit, so there's some high-grade trades taking place up a basis point or two," a trader in New York said. "It also looks like people are more curious in the short end. It's only two weeks into September, but people are already talking about their books for the quarter end."

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