The municipal market eked out gains yesterday on lingering enthusiasm over prospects for another easing of monetary policy by the Federal Reserve, while new-issue activity was dominated by two large "college-saver" issues totaling $225 million.

Tax-exempts imitated early increases in the Treasury market, albeit on a smaller scale, then stalled as participants waited for some direction. Gains for the day were 1/8 point to 1/4 point in spots, according to traders.

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