The municipal market was slightly firmer yesterday, reversing earlier losses on Treasury market strength. Traders said tax-exempt yields were flat to lower by one or two basis points."We started off down a bit, but Treasuries are getting a bump, and it's kind of turned things around in our market as well," a trader in Los Angeles said. "We're probably better one, maybe two basis points, in spots. Some spots were fairly flat. But the tone in the market shifted today. It had been a weaker tone the last few days, but it's feeling a little bit firmer now."
In the new-issue market yesterday, JPMorgan priced for retail investors $800 million of future tax secured bonds for the New York City Transitional Finance Authority. The bonds mature from 2011 through 2029, with term bonds in 2034, 2036, and 2038. Yields range from 1.00% with a 2% coupon in 2011 to 5.00% priced at par in 2036. Bonds maturing from 2022 through 2024, from 2026 through 2028, and in 2034 and 2038 were not offered during the retail order period. The bonds, which are callable at par in 2019, are rated Aa2 by Moody's Investors Service, AAA by Standard & Poor's, and AA-plus by Fitch Ratings.