The municipal market was again firmer Wednesday as 10-year munis continued to dip to historically low levels, reaching the third record low in the past week, while the spread between 10- and 30-year Treasuries was the widest on record.

“There was some sentiment that we’d sort of stabilize at some point and stop the rallying, but it just hasn’t happened yet,” a trader in Los Angeles said. “We have a few more weeks before supply is going to pick up, which will likely make this market do an about-face and see yields come back up to more normal levels, but right now we’re seeing continued gains and a continuing firmness that’s really sort of persisted for weeks now. We’re a good three basis points better today, maybe even a little more in spots.”

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