Municipals were mostly unchanged yesterday as pricing for retail investors continued on an $800 million transaction for the New York City Transitional Finance Authority. Trading activity was light to moderate."It's pretty flat overall, I'd say," a trader in New York said. "On the shorter end, we might be better a basis point or so in spots, but on the longer end, we're even cheapening up a little bit, maybe a basis point there. But it's just in spots, and overall, we're pretty flat."

"There's a little movement here and there, mostly better where there's been any movement, but overall, I'd call it unchanged," a trader in Los Angeles said. "Overwhelmingly, the curve was just pretty flat. Maybe a bit of a firmer tone if anything, but flat."

In the new-issue market yesterday, JPMorgan priced for retail investors $800 million of future tax secured bonds for the Transitional Finance Authority. This is the second day of a two-day retail order period, before institutional pricing today. The bonds mature from 2011 through 2029, with term bonds in 2034, 2036, and 2038. Yields range from 0.93% with a 2% coupon in 2011 to 5.00% priced at par in 2036.

Bonds maturing in 2022, 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 $737.3 million of full faith and credit tax anticipation notes for Oregon. The Tans mature in June 2010, yielding 0.47% with a 2.5% coupon. The credit is rated MIG-1 by Moody's, SP-1-plus by Standard & Poor's, and F1-plus by Fitch.

The Treasury market showed some losses yesterday. The yield on the benchmark 10-year note, which opened at 3.49%, was quoted near the end of the session at 3.54%. The yield on the two-year note was quoted near the end of the session at 0.94% after opening at 0.92%. The yield on the 30-year bond, which opened at 4.39%, was quoted near the end of the session at 4.45%.

As of Tuesday's close, the triple-A muni scale in 10 years was at 85.6% of comparable Treasuries, according to Municipal Market Data. Additionally, 30-year munis were 105.7% of comparable Treasuries. Also, as of the close, 30-year tax-exempt triple-A general obligation bonds were at 112.6% of the comparable London Interbank Offered Rate.

Elsewhere in the new-issue market yesterday, Citi priced $160.6 million of limited obligation bonds for Wake County, N.C. The bonds mature from 2012 through 2029, with term bonds in 2032 and 2036. Yields range from 1.14% with a 2% coupon in 2012 to 4.85% with a 5% coupon in 2036. The bonds, which are callable at par in 2019, are rated Aa1 by Moody's and AA-plus by both Standard & Poor's and Fitch.

JPMorgan priced for retail investors $150 million of variable-rate demand health facilities revenue bonds for the Iowa Finance Authority. The bonds mature from 2010 through 2019, with term bonds in 2029 and 2037. Yields range from 2.19% with a 3% coupon in 2011 to 5.50% with a 5.375% coupon in 2029. Bonds maturing in 2010 were decided via sealed bid. Bonds maturing in 2037 were not offered during the retail order period. The bonds, which are callable at par in 2019, are insured by Assured Guaranty Corp. The underlying credit is rated Aa3 by Moody's and AA-minus by Fitch.

Morgan Stanley priced roughly $135 million of water system revenue bonds for Cincinnati, which included $77.9 million of taxable Build America Bonds. The BABs mature in 2024 and 2034, yielding 5.39% and 6.46%, both priced at par, or 3.50% and 4.20% after the 35% federal subsidy, respectively. The bonds were priced to yield 190 and 205 basis points over the comparable Treasury yields.

The bonds are callable at par in 2019. The deal also contains a $56.8 million taxable series, which matures from 2010 through 2020, with yields ranging from 0.85% with a 3% coupon in 2010 to 3.35% with a 5% coupon in 2020. These bonds are not callable. The credit is rated Aa1 by Moody's and AAA by Standard & Poor's.

Barclays Capital priced $119.4 million of sales tax revenue refunding bonds for the Los Angeles County Metropolitan Transportation Authority. The bonds mature from 2010 through 2019, with yields ranging from 1.37% with a 1.4% coupon in 2011 to 3.83% with a 5% coupon in 2019. Bonds maturing in 2010 were decided via sealed bid. The bonds, which are not callable, are rated A1 by Moody's and AA-plus by Standard & Poor's.

Goldman, Sachs & Co. priced $102 million of hospital revenue and refunding bonds for Colorado Springs. The bonds mature from 2012 through 2024, with term bonds in 2029 and 2033. Yields range from 3.20% with a 3.125% coupon in 2012 to 6.40% with a 6.25% coupon in 2033. The bonds are callable at par in 2014, except bonds maturing in 2033, which are callable at par in 2019. The credit is rated A3 by Moody's and A-minus by Standard & Poor's.

JPMorgan priced $100 million of GOs for the Las Vegas Valley Water District, which includes $90 million of taxable BABs. The Series A direct pay BABs mature in 2039, and where priced to yield 250 basis points over the comparable Treasury yield. The deal also contains a $10 million tax-exempt series, which matures from 2014 through 2021, with term bonds in 2024, 2029, and 2032. Yields range from 2.92% with a 4% coupon in 2014 to 5.40% with a 5.25% coupon in 2032. All the bonds, which are callable at par in 2019, are rated Aa2 by Moody's and AA-plus by Standard & Poor's.

RBC Capital Markets priced $58.2 million of taxable BABs for Texas' Carroll Independent School District. The bonds mature from 2014 through 2021, with term bonds in 2024, 2029, and 2034. Yields range from 3.72% with a 3.75% coupon, or 2.44% after the 35% federal subsidy, in 2014 to 6.68% priced at par, or 4.34% after the subsidy, in 2034. The bonds were priced to yield between 140 and 235 basis points over the comparable Treasury yield.

The economic calendar was light yesterday.

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