The municipal market was unchanged to slightly firmer yesterday.

Traders said tax-exempt yields were flat to one basis point lower in light activity.

"We're getting closer to the weekend now, and with the Fed meeting out of the way, and everyone pretty much satisfied with what they did, people are looking toward the holiday," a trader in New York said. "There's not much going on right now."

In the Treasury market, the yield on the benchmark 10-year Treasury note, which opened at 3.49%, finished at 3.34%. The yield on the two-year note, however, was quoted near the end of the session at 1.48% after opening at 1.61%.

The economic calendar was largely inactive yesterday. However, some economic data remains ahead in this holiday-shortened week. Scheduled for release today are initial jobless claims for the week ended March 15, continuing jobless claims for the week ended March 8, and the composite index of leading economic indicators for February.

Economists polled by IFR Markets are predicting 360,000 initial jobless claims, 2.840 million continuing jobless claims, and a 0.3% drop in the LEI.

In the new-issue market yesterday, Citi priced $573.3 million of bonds for the San Francisco Airport Commission. Pricing information was not released by press time. The bonds were slated to mature from 2009 through 2012, and include bonds subject to the alternative minimum tax as well as non-AMT bonds. Portions of the deal were insured by Assured Guaranty Corp. and Financial Security Assurance Inc. The underlying credit is rated A1 by Moody's Investors Service and A by Standard & Poor's.

Lehman Brothers priced $376.2 million of system-wide revenue bonds for the California State University Trustees. The bonds mature from 2008 through 2028, with term bonds in 2030, 2033, and 2039. Yields range from 2.10% with a 3.5% coupon in 2008 to 5.10% with a 5% coupon in 2039. Bonds maturing from 2012 through 2023 and in 2030, 2033, and 2039 are insured by FSA. The remaining bonds are uninsured. The underlying credit is rated Aa3 by Moody's and A-plus by Standard & Poor's.

Morgan Stanley priced $180.1 million of tax-exempt and taxable lease revenue refunding bonds for the Indiana Finance Authority. Bonds from the $128.6 million tax-exempt series mature from 2011 through 2018, with yields ranging from 3.13% in 2011 to 4.43% in 2018, all with 5% coupons. The bonds are not callable. The $51.5 million taxable series matures from 2008 through 2011. The credit is rated Aa3 by Moody's and AA by Standard & Poor's and Fitch Ratings.

Citi priced $150 million of general obligation bonds for California's Yosemite Community College District in two series. Bonds from the larger $110 million series mature in 2028 and 2032, yielding 4.90% with a 5% coupon in 2028 and 5.04% with a 5% coupon in 2032. Those bonds are callable at par in 2018. The deal also contained a $40 million series of capital appreciation bonds, which mature from 2011 through 2025. The bonds are not callable. The bonds are insured by FSA, and the underlying credit is rated Aa3 by Moody's and AA-minus by Standard & Poor's.

Merrill Lynch & Co. priced $74.5 million of bonds for the East Alabama Health Care Authority. The bonds mature from 2009 through 2013, with a term bond in 2033. Yields range from 4.00% in 2009 to 5.50% in 2033, all priced at par. The bonds, which are not callable, are rated A by Standard & Poor's.

Raymond James & Associates priced $55.9 million of GO school bonds for Illinois' Community Consolidated School District 201. The bonds mature from 2011 through 2021, with yields ranging from 2.83% with a 3.25% coupon in 2011 to 4.47% with a 5.75% coupon in 2021. The bonds, which are callable at par in 2018, are insured by Assured Guaranty. The underlying credit is rated A1 by Moody's.

Indiana's Concord Community Schools Building Corp. competitively sold $48 million of first mortgage bonds to Robert W. Baird & Co. with a net interest cost of 4.86%. The bonds mature from 2018 through 2027 with a term bond in 2029. Yields range from 3.93% with a 4.125% coupon in 2018 to 4.90% with a 5% coupon in 2026. Bonds maturing in 2023, 2027, and 2029 were not formally re-offered. The bonds, which are insured by FSA, are callable at par in 2018. The underlying credit is rated AA by Standard & Poor's.

Morgan Stanley priced $40.9 million of pollution control revenue refunding bonds for Texas' Guadalupe-Blanco River Authority. The bonds mature in 2017, yielding 5.625%, priced at par. The bonds, which are not callable, are rated Baa2 by Moody's, BBB by Standard & Poor's, and BBB-plus by Fitch.

Morgan Stanley also priced $39.8 million of revenue bonds for the Massachusetts Development Finance Agency. The bonds mature from 2009 through 2023 with term bonds in 2028 and 2036. Yields range from 2.00% with a 4% coupon in 2009 to 5.11% with a 5% coupon in 2036. The bonds, which are callable at par in 2018, are rated Aa3 by Moody's and AA-minus by Standard & Poor's.

Banc of America Securities LLC priced $23.9 million of capital improvement refunding special revenue bonds for Orlando in two series. Bonds from the larger $14.7 million series mature from 2010 through 2012 and in 2014, with yields ranging from 2.71% with a 5% coupon in 2010 to 3.59% with a 5.25% coupon in 2014. Bonds from the smaller $9.2 million series mature from 2008 through 2013, with yields ranging from 2.76% with a 3.5% coupon in 2010 to 3.43% with a 4% coupon in 2013. Bonds maturing in 2008 and 2009 were not formally re-offered. None of the bonds are callable. The credit is rated Aa3 by Moody's, AA-minus by Standard & Poor's, and AA by Fitch.

Orangetown, N.Y., competitively sold $21.9 million of bond anticipation notes to Wachovia Bank NA with a NIC of 1.64%. The Bans mature in 2008, yielding 1.75%, priced at par. The credit is rated MIG-1 by Moody's.

Franklin, Mass., competitively sold $18.1 million of bond anticipation notes to Eastern Bank Corp. The Bans mature in 2009, yielding 2.25%, priced at par. The credit is rated MIG-1 by Moody's and SP-1-plus by Standard & Poor's.

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