Municipals ended 3/8 to 1/2 point higher yesterday as new issues inc]udi.s Ca]ifornia's $700 million general obligation deal gamered strong demand.

"There's just some follow-through from what we saw [Tuesday] afternoon," one trader said, adding that Tuesday's advances in municipal futures were helping to provide a better bid for the cash market yesterday. Also contributing to yesterday's gains were scant selling from mutual funds and a light forward calendar.

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