The municipal market was mostly unchanged yesterday, though with a slightly firmer tone, as the Dormitory Authority of the State of New York brought to market $755 million of Build America Bonds.

In the new-issue market yesterday, Merrill Lynch & Co. priced $755.8 million of state personal income tax revenue BABs, which mature from 2022 through 2025, with term bonds in 2039. Yields range from 4.99%, or 3.24% after the 35% federal subsidy, in 2022 to 5.63%, or 3.66% after the subsidy, in 2039, all priced at par. The bonds were priced to yield between 130 and 180 basis points over the comparable Treasury yields, and contain an optional make-whole call at Treasuries plus 35 basis points. The credit is rated AAA by Standard & Poor's and AA-minus by Fitch Ratings.

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