The municipal market on Friday rallied slightly in light trading, as tax-exempts rose 1/8 point, lagging just behind a more impressive gain logged by the U.S. governments's 30-year bond, which rose in renewed fears of Soviet unrest.

Those traders who reported for work Friday said attention was focused on a second crest of supply in the final weeks of 1991, which promises to bring many issues to market. A similar crest appeared two weeks ago, when visible supply totaled $8.06 billion.

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