The tax-exempt market was unusually quiet Wednesday afternoon as traders said it was a slow day despite a majority of the week's primary issuance hitting the market.

"The market is really boring," a New York trader said. "It's a really slow start to the month."

Munis were mostly steady in afternoon trading, according to the Municipal Market Data scale. Yields inside 24 years were steady while yields outside 25 years rose as much as two basis points.

On Tuesday, the 10-year and 30-year yields jumped four basis points each to 1.75% and 2.91%, respectively. The 10-year yield now remains 15 basis points off its record low of 1.60% set July 26. The 30-year yield is hovering 12 basis points off its record low yield of 2.79% set July 25. The two-year finished steady at 0.29% for the ninth consecutive session.

Treasuries were flat. The benchmark 10-year yield and the 30-year yield were steady at 1.63% and 2.73%, respectively. The two-year was steady at 0.28%>

In the primary market, Bank of America Merrill Lynch priced for institutions $850 million of New York City Transitional Finance Authority future tax-secured bonds and subordinate bonds, rated Aa1 by Moody's Investors Service and AAA by Standard & Poor's and Fitch Ratings. Pricing was not available by press time.

In the second day of retail pricing Tuesday, yields on the first series, $100 million of subordinate bonds, ranged from 0.53% with 2% and 4% coupons in a split 2015 maturity to 2.49% with a 2.5% coupon in 2026. Credits maturing in 2014 were offered via sealed bid. The bonds are callable at par in 2022. Yields were increased between three and five basis points from the first day of retail pricing Monday.

Yields on the second series, $750 million of future tax-secured subordinate bonds, ranged from 0.58% with a 5% coupon in 2015 to 3% priced at par and 2.86% with a 5% coupon in a split 2032 maturity. Bonds maturing in 2013 and 2014 were offered via sealed bid. Credits maturing between 2024 and 2027 and between 2029 and 2031 were not offered for retail. The bonds are callable at par in 2022. Yields were increased between three and five basis points from the first retail order period Monday.

The NYC TFA also came to market with $350 million of revenue bonds in two separate pricings in the competitive market.

RBC Capital Markets won the bid for $200 million. Results for bidding were not released on the $150 million pricing by press time.

Barclays Capital held preliminary pricing for $721.6 million of Chicago O'Hare International Airport general airport revenue refunding bonds, rated A2 by Moody's and A-minus by Standard & Poor's and Fitch.

Yields on the first series, 440.4 million of bonds subject to the alternative minimum tax, ranged from 0.86% with a 5% coupon in 2014 to 4.20% with a 4% coupon in 2032. Credits maturing in 2013 were offered via sealed bid. The bonds are callable at par in 2022.

Yields on the second series, $274.7 million of bonds subject to the AMT, ranged from 0.86% with a 4% coupon in 2014 to 3.90% with a 5% coupon in 2032. Credits maturing in 2013 were offered via sealed bid. The bonds are callable at par in 2022.

Bonds in the third series, $6.5 million of debt not subject to the AMT, yielded 0.56% with a 3% coupon in 2014 and 0.75% with a 4% coupon in 2015.

Bank of America Merrill Lynch priced for retail $225 million of Metropolitan St. Louis Sewer District revenue bonds, rated Aa1 by Moody's, AAA by Standard & Poor's, and AA-plus by Fitch. Pricing was not available by press time.

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