The municipal market was markedly firmer Friday, following news of a major bailout plan from the federal government that would see it insure money market mutual funds, purchase the debt of Fannie Mae and Freddie Mac, and take over troubled mortgage assets from financial institutions.

Traders said tax-exempt yields were lower by six or seven basis points overall, with muted gains on the short end but more extreme gains on the long end.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.