The municipal market was slightly firmer Friday, lagging the rallying Treasury market, which has seen yields drop significantly due to weaker than expected consumer price index data.

"The market really is not in touch with this Treasury rally," a trader in New York said. "We have a firmer feel, which is more notable on the long end than on the short end. Secondary trading is fine for the time being, but I expect that to greatly diminish as we enter the afternoon. Overall, we're one to two basis points firmer on the day."

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