Tax-exempts were again firmer yesterday after Tuesday’s large rally due to the Federal Reserve slashing the federal funds rate target 75 basis points to 3.50%, which caused short-end municipal yields to dip as much as 15 basis points.

Short-end yields were lower by as much as eight to 10 basis points yesterday, intermediate bonds are roughly three to five basis points firmer, and paper on the long end is showing gains of up to two basis points, traders said.

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