NEW YORK – The tax-exempt market was steady Tuesday afternoon even as new deals were priced very well and yields were lowered from retail order periods.

“Munis are dead,” a New York trader said. “It’s horrible.” He added the secondary could be quiet because all the focus is on the primary. “But dealers I talk to aren’t that busy.”

Munis were steady early Tuesday afternoon, according to the Municipal Market Data scale. On Monday, the two-year yield closed steady at 0.33% for the sixth consecutive trading session. The 10-year yield fell two basis points to 1.95% while the 30-year yield dropped one basis point to 3.31%.

Treasuries were weaker. The benchmark 10-year yield and the 30-year yield each rose three basis points to 2.01% and 3.15%. The two-year yield increased one basis point to 0.28%.

In the primary market, Goldman, Sachs & Co. won the bid for the largest deal of the week – $950 million of Pennsylvania GOs. The credit is rated Aa1 by Moody’s Investors Service, AA by Standard & Poor’s, and AA-plus by Fitch Ratings.

Yields ranged from 0.42% with a 4% coupon in 2014 to 2.87% with a 5% coupon in 2028. Credits maturing in 2013 were offered via sealed bid. Bonds maturing in 2018, 2019, 2024, and between 2029 and 2032 were not formally reoffered. The bonds are callable at par in 2022.

Also in the competitive market, Citi won the bid for $320.7 million of Virginia College Building Authority revenue bonds, rated Aa1 by Moody’s and AA-plus by Fitch. Pricing details were not available by press time.

In the negotiated sector, Wells Fargo priced for institutions $729.1 million, up from $556 million, of New York Metropolitan Transportation Authority revenue bonds, following a retail order period Monday. The credit is rated A2 by Moody’s and A by Standard & Poor’s and Fitch.

Yields ranged from 0.59% with a 3% coupon in 2013 to 4.30% with a 4.25% coupon in 2042. Bonds maturing in 2012 were offered via sealed bid. The bonds are callable at par in 2022. Yields were lowered up to six basis points from retail pricing.

Bank of America Merrill Lynch priced for institutions $475.9 million of Atlanta airport general revenue bonds, following a retail order period Monday. The credit is rated A1 by Moody’s and A-plus by Standard & Poor’s and Fitch.

Yields on the first series, $62.9 million of airport general revenue bonds not subject to the alternative minimum tax, ranged from 0.35% with a 2% coupon in 2013 to 3.99% with a 5% coupon in 2042. The bonds are callable at par in 2022. Yields were lowered up to five basis points from retail pricing.

Yields on the second series, $185.5 million of airport general revenue bonds not subject to the alternative minimum tax, ranged from 0.35% with a 3% coupon in 2013 to 3.99% with a 5% coupon in 2042. The bonds are callable at par in 2022. Yields were lowered up to six basis points from retail pricing.

Yields on the third series, $227.5 million of airport general revenue bonds subject to the alternative minimum tax, ranged from 0.56% with a 4% coupon in 2013 to 4.45% with a 5% coupon in 2042. The bonds are callable at par in 2022. Yields were lowered up to 12 basis points in repricing.

Citi priced $238 million of Michigan Finance Authority state revolving fund revenue bonds, rated AAA by Standard & Poor’s and Fitch. Pricing details were not available.

In the secondary market, trades reported by the Municipal Securities Rulemaking Board showed firming in the past two weeks.

A dealer bought from a customer New York City Municipal Water Finance Authority 5.724s of 2042 at 4.12%, 20 basis points lower than where they traded two weeks ago.

A dealer sold to a customer San Diego Community College District 5s of 2027 at 3.01%, 13 basis points lower than where they traded two weeks prior.

A dealer sold to a customer Austin, Texas, 5s of 2021 at 2.02%, 13 basis points lower than where they traded two weeks prior.

A dealer sold to a customer Illinois 5.1s of 2033 at 5.37%, three basis points lower than where they traded last week.

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