The municipal market was firmer by about two or three basis points overall Thursday amid light to moderate secondary trading activity.

“The market is still feeling good,” a trader in Chicago said. “We are up a few ticks. People are feeling good about it, but there isn’t a lot coming, so people are pressured to reinvest. People have been given an edict that when bonds roll over into munis, they are supposed to reinvest. There is a lot left from June and then July. And they need to get reinvested, but there isn’t a whole lot coming. It is the Fourth of July weekend, so its pretty usual. When the calendar picks up in mid-July, the market is going to be tighter than you want it to be.”

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