The municipal market was slightly firmer yesterday. Traders said tax-exempt yields were lower by about three basis points overall.

"Munis are doing a bit better today, and they've gotten progressively firmer as the day has gone on," a trader in Los Angeles said. "We were probably better a basis point or two early on, and into the afternoon, but yields have crept lower since then, and now I'd say we're probably better a solid three basis points. There's really nothing positive going on with Treasuries right now, so we're just kind of doing our own thing. There's been some demand out there, so business is getting done to a degree."

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