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.

Merrill Lynch & Co. priced $256.6 million of grant anticipation revenue vehicle bonds for North Carolina. The bonds mature from 2010 through 2021, with yields ranging from 1.08% with a 2% coupon in 2011 to 3.93% with a 5% coupon in 2021. Bonds maturing in 2010 were decided via sealed bid. The bonds, which are callable at par in 2019, are rated Aa3 by Moody's, AA by Standard & Poor's, and AA-minus by Fitch.

The Florida Department of Transportation competitively sold $200 million of right-of-way acquisition and bridge construction bonds to Morgan Stanley with a true interest cost of 4.73%. The bonds mature from 2010 through 2030 with term bonds in 2034 and 2039. Coupons range from 3% in 2010 to 5% from 2016 through 2039. None of the bonds were formally re-offered. The bonds, which are callable at 101 in 2019, declining to par in 2020, are rated Aa1 by Moody's, AAA by Standard & Poor's, and AA-plus by Fitch.

The Treasury market showed some gains yesterday. The yield on the benchmark 10-year note, which opened at 3.60%, was quoted near the end of the session at 3.48%. The yield on the two-year note was quoted near the end of the session at 0.93% after opening at 0.97%. The yield on the 30-year bond, which opened at 4.51%, was quoted near the end of the session at 4.39%.

As of Monday's close, the triple-A muni scale in 10 years was at 83.1% of comparable Treasuries, according to Municipal Market Data. Additionally, 30-year munis were 103.6% of comparable Treasuries. Also, as of the close Monday, 30-year tax-exempt triple-A general obligation bonds were at 109.4% of the comparable London Interbank Offered Rate.

Elsewhere in the new-issue market, JPMorgan priced $100 million of taxable gas revenue bonds for the Municipal Gas Authority of Georgia. The bonds mature from 2010 through 2019, and were priced to yield between 170 and 245 basis points over the comparable Treasury yields. The credit is rated A1 by Moody's, AA-minus by Standard & Poor's, and A-plus by Fitch.

New Mexico's Santa Fe Public School District competitively sold $80 million of GO school building bonds to Piper Jaffray & Co. with a TIC of 2.58%. The bonds mature from 2010 through 2019, with yields ranging from 2.26% with a 3% coupon in 2015 to 2.80% with a 3.25% coupon in 2017. Bonds maturing from 2010 through 2014 and in 2018 and 2019 were not formally re-offered. The bonds, which are not callable, are rated Aa2 by Moody's and AA by Standard & Poor's.

Loop Capital Markets priced $68 million of police facility revenue bonds for New Jersey's Newark Housing Authority. The bonds mature from 2010 through 2013, and in 2018, 2021, 2026, and 2030, with a term bond in 2038. Yields range from 2.27% with a 3.5% coupon in 2010 to 6.31% with a 6.75% coupon in 2038. The bonds, which are callable at par in 2019, are insured by Assured Guaranty Corp. The underlying credit is rated Baa2 by Moody's.

JPMorgan priced for retail investors $64.4 million of general obligation bonds for Oakland. The bonds mature from 2010 through 2029, with term bonds in 2034 and 2039. Yields range from 1.32% with a 3% coupon in 2010 to 5.73% with a 5.625% coupon in 2034. Bonds maturing in 2039 were not offered during the retail order period. The bonds, which are callable at par in 2019, are rated A1 by Moody's, AA-minus by Standard & Poor's, and A-plus by Fitch.

Kentucky's Sanitation District No. 1, which encompasses Campbell, Kenton, and Boone counties, competitively sold $54.9 million of sanitation district revenue bonds to BMO Capital Markets. The district was allowing bidders the option to bid for the bonds as either tax-exempt or taxable Build America Bonds. BMO won the deal with a taxable BAB offer and a TIC of 6.45%, or 4.21% after the 35% federal subsidy.

The bonds mature from 2010 through 2024, with term bonds in 2026, 2029, 2034, and 2039. Coupons range from 1.7% in 2010 to 7.125% in 2039. None of the bonds were formally re-offered. The bonds, which are callable at par in 2019, are rated Aa3 by Moody's and AA by Standard & Poor's.

Wichita, Kan., competitively sold $46.7 million of GO renewal and improvement temporary notes to Morgan Stanley with a TIC of 0.47%. The notes mature in August 2010, with a 0.75% coupon, and were not formally re-offered. The credit is rated MIG-1 by Moody's and SP-1-plus by Standard & Poor's.

Morris County, N.J., competitively sold $43.6 million of GO bonds to Robert W. Baird & Co. with a TIC of 2.86%. Further pricing information was not available by press time. The bonds were slated to mature from 2010 through 2022. The bonds, which are callable at par in 2017, are rated triple-A by Moody's and Standard & Poor's.

The economic calendar was light yesterday.

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