The municipal market was slightly firmer yesterday. Traders said tax-exempt yields were flat to lower by two or three basis points.

"We're a bit better right now, probably a good two or three basis points, maybe even a little more in some spots," a trader in New York said. "The shorter [paper] is actually doing a little better right now than the [paper] out long. We also have a decent amount of supply coming this week, so we'll see if the firmness holds through the week."

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