There were more buyers than sellers in Wednesday’s tax-exempt market, compressing spreads and pushing the market firmer. Traders looked to the secondary for direction as the primary offered no supply this week.

“It definitely feels like spreads have tightened, because there is no supply,” a Los Angeles trader said. “I’m telling bankers here that if you have a deal, bring it. Because the market wants product and there is a lot of pent-up demand.”

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