The municipal market was slightly firmer yesterday, as the Dallas County Hospital District came to market with close to $700 million of taxable Build America Bonds.In the new-issue market, Merrill Lynch & Co. priced $680.2 million of taxable BABs for the district in two series. Bonds from the $217.5 million series mature from 2020 through 2025, with a term bond in 2034. Yields range from 4.95% in 2020, or 3.22% after the 35% federal subsidy, to 6.17% in 2034, or 4.01% after the subsidy.
All bonds are priced at par. The bonds were priced to yield between 150 and 220 basis points over the comparable Treasury yields. The bonds are callable at par in 2019.