The tax-exempt market turned its attention to the primary market Wednesday as two $2 billion dollar deals hit the market.

Traders said new deals were well received, taking attention away from the secondary.

"New issues seem to be going fairly well, but seem priced to move," a trader in Ohio said. "The secondary seems quiet. You have to have a cheap piece to offer if you want your phone to ring. Otherwise, the focus is on primary."

This trader added the belly of the curve seemed three to five basis points cheaper.

Bank of America Merrill Lynch and Morgan Stanley priced for retail $2.1 billion of California various purpose general obligation bonds, rated A1 by Moody's Investors Service, A by Standard & Poor's, and A-minus by Fitch Ratings. Institutional pricing is expected Thursday.

Yields on the first series of $1.25 billion ranged from 0.65% with a 5% coupon in 2016 to 4% priced at par in 2043. Bonds maturing in 2013 were offered via sealed bid. Portions of credits maturing in 2037 and 2043 were not offered for retail. The bonds are callable at par in 2023.

Yields on the second series of $802 million of refunding bonds ranged from 0.65% with 3% and 4% coupons in a split 2016 maturity to 3.61% with a 3.5% coupon in 2030. Credits maturing between 2013 and 2015 were offered via sealed bid. Portions of bonds maturing between 2024 and 2033 were not offered for retail. The bonds are callable at par in 2023 except for those maturing in 2023. Bonds maturing in 2024 and 2029 are callable at par in 2018.

Barclays priced $2 billion of Florida Hurricane Catastrophe Fund Finance Corp. taxable revenue bonds, rated Aa3 by Moody's, AA-minus by Standard & Poor's, and AA by Fitch.

The bonds were priced at par with a 1.298% coupon in 2016, 2.107% coupon in 2018, and 2.995% coupon in 2020. The bonds were priced from 95 basis points, 137.5 basis points, and 180 basis points above the comparable Treasury yields.

Morgan Stanley priced $234.2 million of Tennessee's Metropolitan Government of Nashville and Davidson County water and sewer revenue bonds, rated Aa3 by Moody's and AA-minus by Standard & Poor's.

Yields ranged from 1.90% with 3% and 5% coupons in a split 2022 maturity to 3.44% with a 5% coupon in 2043. The bonds are callable at par in 2023.

In the competitive market, Citi won the bid for $200 million of Michigan GOs, rated Aa2 by Moody's and AA-minus by Standard & Poor's. Pricing details were not available by press time.

Municipal bond scales ended as much as one basis point weaker Tuesday after a steady to slightly firmer tone Monday.

Yields on the Municipal Market Data triple-A GO scale as much as one basis point higher. The 10-year and 30-year yields increased one basis point each to 1.72% and 2.94%, respectively. The two-year closed steady at 0.29% for the third session.

Yields on the Municipal Market Advisors 5% coupon triple-A benchmark scale ended as much as one basis point higher. The 30-year yield increased one basis point to 3.05%. The two-year and 10-year yields were steady at 0.32% and 1.79%, respectively, for the third session.

Treasuries were weaker Wednesday for the third session. The benchmark 10-year yield jumped three basis points to 1.79% and the 30-year yield increased four basis points to 2.98%. The two-year was steady at 0.23%.

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