The municipal market absorbed several of the week's largest primary offerings without losing much ground as it was unchanged with a slightly firmer tone yesterday when the Federal Open Market Committee again held the federal funds rate target unchanged.In the new-issue market yesterday, Morgan Stanley priced $800 million of future tax-secured subordinate bonds for the New York City Transitional Finance Authority. The bonds mature from 2010 through 2024, with yields ranging from 0.93% with a 2% coupon in 2011 to 4.08% with a 5% coupon in 2024. Bonds maturing in 2010 were not formally re-offered. 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 $775.2 million of toll bridge revenue bonds for California's Bay Area Toll Authority. The bonds mature from 2019 through 2029, with term bonds in 2034, 2039, and 2044. Yields range from 3.60% with a 3.5% coupon in 2019 to 5.12% with a 5.625% coupon in 2044. The bonds, which are callable at par in 2019, are rated Aa3 by Moody's, AA by Standard & Poor's, and AA-minus by Fitch.

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