The municipal market was firmer in light trading yesterday, while Treasuries gained as the Dow Jones industrial average dropped to a 2008 low.

"The long end is performing really well, 2030 and out," a trader in New York said. "We're still underperforming Treasuries, but the market is feeling okay. Munis really underperformed the last week-and-half or so and now we're catching up a bit."

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