The municipal market was markedly firmer yesterday, picking up where it left off Tuesday when it surged after the Federal Open Market Committee slashed the federal funds rate target at least 75 basis points, to a range of zero to 0.25% from its previous 1.00%.

Traders said tax-exempt yields were firmer by seven to nine basis points overall, with gains as much as 12 to 15 basis points on the long end as market participants largely jumped off the sidelines and into buying mode.

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