The municipal market was firmer yesterday, following Treasuries, as California opened a retail order period on its $3.2 million of economic recovery bonds, the week's largest scheduled transaction.

Lehman Brothers priced the California ERBs for retail investors in two series. Bonds from the $1.3 billion Series A mature from 2008 through 2011, with a term bond in 2023. Yields range from 2.20% with a 3% coupon in 2009 to 4.15% with a 4% coupon in 2023. Bonds maturing in 2008 and some bonds maturing in 2009 were priced via sealed bid. Bonds from the $1.9 billion Series B contain six maturities in 2023, with yields ranging from 2.65% to 2.83%, and with coupons ranging from 3% to 5%.

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