Tax-exempt yields were mostly unchanged yesterday as participants focused their attention on the primary market, and Federal Reserve policy makers again held the federal funds rate target unchanged at its 0% to 0.25% range."It's fairly quiet," a trader in New York said. "There's not a whole lot trading, and there's not a whole lot of movement either. I think we're fairly flat. I'm not really feeling the market being pulled in either direction. People are kind of focusing on the new issues, and there's not a ton going on in the secondary, but overall, I'd say we're just pretty flat."
In the new-issue market yesterday, JPMorgan and Ramirez & Co. priced $808.6 million of state personal income tax revenue bonds for the Dormitory Authority of the State of New York in three series. Bonds from the $584.1 million Series A mature from 2010 through 2029, with term bonds in 2034 and 2039. Yields range from 1.34% with a 5% coupon in 2011 to 5.19% with a 5% coupon in 2039. Bonds maturing in 2010 were decided via sealed bid. The bonds are callable at par in 2019.