The municipal market was unchanged to slightly firmer yesterday, kicking off a week likely to be dominated by Build America Bond issuance in the primary market. Traders said tax-exempt yields were flat to lower by one or two basis points.

"We're a little better, mostly out long," a trader in New York said. "I'd still say we're relatively flat on the whole, but there is some firmness out there. It's still pretty quiet, just because a lot of people are on vacation; it's that time of year. Some business is getting done, but there are just less people around, which is to be expected. But it feels a little better out there."

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