The municipal market was quiet but slightly firmer Friday, as the extensive tax-exempt rally seen the past several sessions lost steam and buyers retreated to the sidelines in advance of the looming holidays.

"Yesterday was a madhouse. Every time I hung up the phone, it rang again. Today, you can hear crickets," a trader in New York said. "There's a few things on the long end trading okay, but for the most part it's very quiet. It feels like everyone's on holiday already. Yesterday, it was like a food fight over the same stale bonds, and it was getting real nasty. Things were trading through the scale that shouldn't have been."

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