The municipal market was slightly firmer yesterday, with gains mostly found on the long end of the curve, amid fairly light trading activity ahead of the three-day Labor Day weekend.“We’re doing a bit better on the long end again,” a trader in New York said. “There’s not really much activity out there, but the activity you can see is pretty much happening exclusively out long. On the whole, there’s just not a lot going on in the market right now. People are mostly just winding down, getting ready for the long weekend. And really, on the shorter end of the curve, you can’t really see anything. There’s just nothing going on there, we’re totally flat. But out long, you might even be able to pick up three, maybe four basis points, depending on what you’ve got.”

“On the whole, we’re probably better about two basis points, but most of that is on the long end,” a trader in Los Angeles said. “I’m not sure we’re anything but completely flat inside of 20 years. Go beyond that though, and you can see some gains. We’re picking up probably four basis points on the really long end of the curve, and probably scales back from there. But it’s quiet. The secondary is pretty light, there isn’t too much paper out there, and there aren’t a lot of folks participating right now. But I think we’ll see an uptick in activity if not next week, then the week after.”

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