The municipal market was unchanged with a slightly weaker tone yesterday as investors focused on the primary, which saw Texas sell $5.5 billion of tax and revenue anticipation notes and Pennsylvania sell $689.6 million of general obligation bonds by competitive bid.The Texas Trans were sold to various bidders, with Citi and Morgan Stanley each winning more than a total of $1 billion of the deal. Citi won a $500 million portion with a net interest cost of 0.46%, while Morgan won a $500 million component with an NIC of 0.48%. The issuer set the coupon at 2.5% on Monday. The notes carry the highest short-term ratings from all three major rating agencies - MIG-1 from Moody's Investors Service, SP-1-plus from Standard & Poor's, and F1-plus from Fitch Ratings.

Pennsylvania sold sold its refunding GOs to Merrill Lynch & Co. at a true interest cost of 3.09%. The bonds mature from 2010 through 2021, with yields ranging from 0.60% with a 3% coupon in 2010 to 3.21% with a 5% coupon in 2019.

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