The municipal market was slightly firmer yesterday, following Treasuries.

“I would say overall, you’re probably getting one to three basis points, just because of the way [the Treasury market has] rallied, and if it continues, we could get a little more,” a trader in New York said. “We cheapened up over the past few days, just with the sell-off, but now a lot of people have a bunch of inventory. Then, of course, the downgrade on [Financial Guaranty Insurance Co.] is not helping. Certainly FGIC’s trading like it’s a single-A piece of paper right now, that’s for sure.”

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