Yields in the tax-exempt market were flat to two basis points weaker Wednesday, not rising nearly as much as Tuesday, as traders said the secondary market was stagnant.

"It feels weaker but there are not necessarily the trades to reflect that," a Chicago trader said. "We are still looking at outflows and Treasuries are off and it's a stagnant fixed-income market in general. We are weaker by a couple basis points."

In the primary market Wednesday, JPMorgan issued a preliminary retail wire for $5.5 billion of California revenue anticipation notes, ahead of institutional pricing Thursday. The notes are rated MIG-1 by Moody's Investors Service, SP-1-plus by Standard & Poor's, and F1 by Fitch Ratings.

The first series of $2.5 billion had prospective yields ranging from 0.18% to 0.23% with a 2% coupon in 2014. The second series of $3 billion had prospective yields ranging from 0.20% to 0.27% with a 2% coupon in 2014.

When California issued $10 billion of RANs in August 2012, the May 2013 maturities yielded 0.33% and the June 2013 maturities yielded 0.43%, the Treasurer's office said Wednesday.

Raymond James & Associates priced for institutions $386.5 million of Reedy Creek, Fla., Improvement District ad valorem tax bonds, rated Aa3 by Moody's, A-plus by Standard & Poor's, and AA-minus by Fitch.

Yields on the first series of $345.3 million ranged from 2.71% with a 5% coupon in 2020 to 5% priced at par in 2038. The bonds are callable at par in 2023. Yields were raised seven basis points on bonds maturing in 2026 and two basis points on bonds maturing in 2032 from retail pricing Tuesday.

Yields on the second series of $41.2 million of refunding bonds, ranged from 0.61% with a 3% coupon in 2015 to 3.81% with a 5% coupon in 2024. Bonds maturing in 2014 were offered via sealed bid. The bonds are callable at par in 2023. Yields were lowered between two and seven basis points on bonds maturing between 2015 and 2018 from retail pricing Tuesday. Yields were raised seven basis points on bonds maturing beyond 2020.

Citi priced $226.7 million of Dallas-Fort Worth International Airport joint revenue refunding bonds, subject to the alternative minimum tax. The bonds are rated A2 by Moody's, A-plus by Standard & Poor's, and A by Fitch.

Yields ranged from 1.10% with a 4% coupon in 2015 to 5.37% with a 5.25% coupon in 2033.Bonds maturing in 2014 were offered via sealed bid. The bonds are callable at par in 2023.

Morgan Stanley priced $150 million of Philadelphia water and wastewater revenue bonds, rated A1 by Moody's, A by Standard & Poor's, and A-plus by Fitch. Yields ranged from 1.33% with a 4% coupon in 2017 to 5.25% with a 5.125% coupon in 2043. Bonds maturing in 2043 are callable at par in 2022.

Tuesday, yields on the Municipal Market Data scale ended as much as seven basis points higher. The 10-year yield rose seven basis points to 2.79% and the 30-year yield increased five basis points to 4.33%. The two-year finished flat at 0.43% for the 20th consecutive session.

Yields on the Municipal Market Advisors scale also ended as much as seven basis points higher. The 10-year and 30-year yields rose six basis points each to 2.95% and 4.40%, respectively. The two-year yield was unchanged at 0.54% for the fifth session.

After mostly steady trading Wednesday morning, Treasuries were firmer in the afternoon. The two-year and benchmark 10-year yields fell one basis point each to 0.33% and 2.71%, respectively. The 30-year was flat at 3.75%.

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