The municipal market was firmer by about five to seven basis points yesterday, after the Federal Open Market Committee slashed the federal funds rate target at least 75 basis points, to a range of 0.00% to 0.25% from its previous 1.00%.

"Back in the old days, when we saw that kind of a rate cut from the Fed, we would have yelled out, 'Freeze the inventory! We're going to mark everything up,' " a trader in Los Angeles said. "But we haven't done that - we are waiting to sell. The reaction initially was a good feeling, with everyone talking it up, but I haven't really heard of a lot of trades."

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