The municipal market was slightly firmer yesterday in post-weekend light to moderate trading activity.Traders said tax-exempt yields were flat to lower by two or three basis points.
"I think we picked up a couple of basis points," a trader in Los Angeles said. "There wasn't much activity to speak of, but the tone is noticeably firmer. It's hard to really call it better by any substantial degree, just because there was so little activity, but if you pressed me, I'd say we probably picked up a basis point or two, maybe even three on the long end. But you could also call it mostly flat, just because there wasn't much activity, and I couldn't really argue."