The municipal market was firmer by about three basis points overall in fairly light trading activity, as a positive tone in tax-exempts persisted.“It’s kind of an interesting marketplace. You see Treasuries are off, but munis are up probably two to four basis points,” a trader in Los Angeles said. “The market is pretty firm, but there’s still not a lot of bonds around to choose from. The people that have been seeking bids for their bonds have done remarkably well, especially in the high grade sector. The not-so-high grades, it’s depending on size. If it’s a good-sized block, they’ll probably get a good bid. If it’s just a medium-sized block, less than a million, you may get a bid, but it may not be good.”

The Treasury market showed losses yesterday. The yield on the benchmark 10-year note, which opened at 3.31%, was quoted near the end of the session at 3.40%. The yield on the two-year note was quoted near the end of the session at 0.93% after opening at 0.91%. The yield on the 30-year bond, which opened at 4.19%, was quoted near the end of the session at 4.29%.

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