The municipal market was slightly firmer yesterday.

"There's just a pretty good, positive tone in the market right now," a trader in New York said. "Munis are better by about two or three basis points at this point, more so on the long end."

The Treasury market was mixed. The yield on the benchmark 10-year Treasury note, which opened at 3.81%, finished at 3.80%. The yield on the two-year note was quoted near the end of the session at 2.41% after opening at 2.39%.

In the new-issue market yesterday, Lehman Brothers priced $1 billion of second-tier revenue refunding bonds for the North Texas Tollway Authority. The bonds mature in 2031, 2033, and 2038. Yields range from 5.8% with a 6.125% coupon in 2031 to 6% with a 5.75% coupon in 2038. The bonds, which are callable at par in 2018, are rated A3 by Moody's Investors Service and BBB-plus by Standard & Poor's.

RBC Capital Markets priced $450 million of water and sewer revenue refunding bonds for Miami-Dade County. Pricing information was not available by press time. The bonds mature from 2008 through 2022, and are insured by Financial Security Assurance Inc.

Morgan Stanley priced $217.9 million of general resolution projects subordinated bonds for the Municipal Electric Authority of Georgia in two series. Bonds from the larger $154.8 million series mature from 2009 through 2021, with yields ranging from 1.98% with a 4% coupon in 2009 to 4.58% with a 5.25% coupon in 2021. Bonds from the smaller $63.1 million series also mature from 2009 through 2021, with yields ranging from 1.98% with a 4% coupon in 2009 to 4.58% with a 5.25% coupon in 2021. None of the bonds are callable. The credit is rated A2 by Moody's, A by Standard & Poor's, and A-plus by Fitch Ratings.

Citi priced $159.1 million of sewer system revenue bonds for Fresno, Calif. The bonds mature in 2019, from 2021 through 2028, in 2033, and in 2037. Yields range from 4.01% with a 5% coupon in 2019 to 4.82% with a 4.625% coupon in 2037. The bonds, which are callable at par in 2018, are insured by Assured Guaranty Corp. The underlying credit is rated A2 by Moody's, AA-minus by Standard & Poor's, and A-plus by Fitch.

RBC priced $130 million of unlimited-tax school building bonds for Texas' Longview Independent School District. The bonds mature from 2019 through 2032, with a term bond in 2036. Yields range from 4.06% with a 4% coupon in 2019 to 4.90% with a 4.75% coupon in 2036. The bonds, which are callable at par in 2018, are backed by the state's Permanent School Fund guarantee program. The underlying credit is rated AA-minus by both Standard & Poor's and Fitch.

In economic data released yesterday, initial jobless claims for the week ended July 5 came in at 346,000, after 404,000 the previous week. Economists polled by IFR Markets had predicted 399,000 initial jobless claims.

Continuing jobless claims came in at 3.202 million, after a revised 3.111 million the previous week. Economists polled by IFR had predicted 3.125 million continuing jobless claims.

Today, the preliminary University of Michigan consumer sentiment index for July will be released. Economists polled by IFR Markets are predicting 399,000 initial jobless claims, 3.125 million continuing jobless claims, and a 56.0 Michigan sentiment index.

Also in the new-issue market, New York's William Floyd Union Free School District competitively sold $54.5 million of tax anticipation notes to various bidders. Commerce Capital Markets took the largest share, worth $49.5 million, with a net interest cost of 1.60%. The Tans mature in June 2009, yielding 2.75% with a 5% coupon. The credit is rated SP-1-plus by Standard & Poor's.

New York's Yorkshire-Pioneer Central School District competitively sold $30 million of serial bonds to Citi with a NIC of 3.93%. The bonds mature from 2009 through 2021, with yields ranging from 1.75% with a 3.625% coupon in 2009 to 4.10% with a 4% coupon in 2023. The bonds, which are callable at par in 2018, are insured by FSA.

The San Leandro, Calif., Redevelopment Agency competitively sold $27.5 million of redevelopment project tax allocation bonds to Morgan Stanley with a true interest cost of 5.29%. The bonds mature from 2009 through 2032, with a term bond in 2038. Yields range from 2.00% with a 5% coupon in 2009 to 5.40% priced at par in 2038. Bonds maturing in 2010 and 2016 were not formally re-offered. The bonds, which are callable at par in 2018, are rated A-minus by Standard & Poor's.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.