The municipal market was slightly firmer yesterday, mirroring movement in Treasuries, while underwriters priced over $1.6 billion in new issues. Traders said tax-exempt yields were lower by about two basis points overall.“There wasn’t a whole lot of activity, but there was definitely a bit of firmness creeping into the market as the day progressed,” a trader in New York said. “I think we were pretty flat early on, but the market seemed to improve little by little. I think in the end, we’re probably better by a basis point or two, maybe closer to two overall.”

“We’re definitely a little bit better,” a trader in Los Angeles said. “The secondary is still somewhat quiet, but business is getting done. I’d say we’re up a good two basis points, spread pretty evenly throughout the curve.”

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