The municipal market was unchanged to slightly weaker yesterday, as New York’s Metropolitan Transportation Authority priced $750 million of Build America Bonds, following Wednesday’s mammoth California BAB deal.

The MTA deal was priced by JPMorgan in one term maturity in 2039, yielding approximately 7.34%, priced at par. According to the MTA’s press release: “The [$750 million of BAB] Series 2009C bonds were priced at 3.50% plus the 30-year Treasury rate of 3.836%. Yield for the Series 2009C bonds was 7.336% for the 2039 maturity, which is the equivalent tax-exempt yield of 4.768%. The all-in TIC for the Series 2009B and Series 2009C bonds was 4.92%.”

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